Trading Techniques  |  OCT 2007

Forex Volatility Patterns by Ken Calhoun

Forex Volatility Patterns by Ken Calhoun Want to catch 40 to 100 pips in each trade? Here’s how you can find those entry and exit signals to make your forex trading a success. Capturing volatile breakouts and reversals in currency pair trades has long been a challenge for active foreign exchange traders. But how often do traders actually trade high-volatility patterns correctly? Trendline projections in lagging indicators such as moving averages/exponential moving averages (MAs/EMAs) often whipsaw traders out of positions and need to be modified for successfully trading volatile currency pair chart patterns. To successfully trade the spot FX market, traders can use precision technical analyses to pinpoint specific entries, but only when signals are combined in a systematic, professional manner. Many traders tend to use multiple indicators and time frames incorrectly, causing needless stops and losses in their currency trades. Developing an arsenal of easy-tounderstand signals that clearly identify entry and exit triggers is critical to forex trading success.

by Ken Calhoun