Hi all,
I have been lurking this site for long time. Now it’s time to post something.
I am noticing less/little volatility these days to the point that I am wondering if it is worth trading.
Do you think that it could be a good idea to stop trading FX during the remaining hot months and come back to the markets in September?
Obviously this time would be used to check the journal study and improve my strategy.
Any opinion is appreciated.
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It really depends on your strategy, some strategies demand very high volatility.
But measuring volatility is not straightforward. ATR gives an idea but it doesn’t allow accurate comparison with other paIrs, only to that one pair and its volatility reord. To compare the volatility of different pairs, take the ATR of each and make it a percentage of its current price.
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I understand.
Actually I do not like trading lower than 4h charts and the strategy I am testing uses also Bollinger Bands which I am seeing very compressed in the last weeks.
I was wondering if the markets may be less active in this period of the year.
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traditionally, they are, until about 1st September (not always as much as this year, it seems to me - but that’s only “chat”: i haven’t measured it properly)
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Compared to when? Like in 2020? Or just this month?
Compared to last months. I am seeing less setups that, since I use the Bollinger bands, require the price to bounce off the extremes and possibly the bands widened.
Ohh I see. Are you seeing this across many pairs or just some of the major ones?
Seems like many pairs, not majors only, are doing this and thought this could be due to the period of the year.
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yes, absolutely - relatively normal for the time of year
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