THREE RULES OF VOLATILITY part 2

THREE RULES OF VOLATILITY part 2

The second rule is that once volatility is comparatively low for an extended amount of your time, the longer the fundamental quantity, the a lot of explosive the ultimate increase in volatility. this suggests that once a currency pair’s worth is moving very little over an extended time, like many days or weeks, it becomes a lot of doubtless to create a robust directional flight.

We can prove this second rule by scrutiny however Forex currency pairs move following breakouts. once the value has been contained inside a slender vary, say but third-dimensional, for the last twenty days and breaks out, the flight is on the average stronger and travels any than if the vary has been over third-dimensional.