• Volatility can tell us a lot about our markets - from gauging risk trends to deciding your trade strategy
• We can look at volatility measures for different regions that indicate a relative opportunity
• There are also activity indicators across asset classes that can show a spread of sentiment
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
Volatility gives a critical and in-depth assessment of the markets and their environment. Therefore, all traders should have a general understanding of how to analyze and interpret volatility so that they can incorporate it into their trading. In today's Strategy Video, we focus on this aspect of the markets. Beyond the use of the traditional VIX as a 'risk' or 'fear' gauge - and therefore a directional indicator for sentiment - we discuss strategy implications, cross asset coverage and even the interpretation of motivations.
Sign up for John’s email distribution list, here.