If you take a look at the price chart in the Forex market, you will see that there are a lot of fluctuations. The volatility indicators measure the magnitude and the size of these fluctuations. Generally speaking, the price fluctuations can be highly intensive or insignificant, but the important part here is that they come in waves: if you notice increased volatility, then you should expect low intensity later on and vice versa. That is why the volatility indicators are very handy.
The Average True Range (ATR) illustrates the fluctuations’ magnitude; this makes it an invaluable tool for every Forex trading strategy. Make sure you make room for it in your strategy.
The Bollinger Bands Forex indicator is a valuable member of many successful trading strategies, because it can measure both the trend’s direction and volatility
ABOUT TRUST ONLINE