Forex Strategy Video: Understand Surprise, Volatility and Trend in Markets
• The market is a collective of many different traders with different forecasts and interpretations
• When we view the market as a consensus of the herd; interpreting volatility, trend, momentum is easier
• We look at why the FOMC rate decision was important and why it generated so much volatility
Sign up for John’s email distribution list, here.
Why are some events market-moving while others are not? How does volatility and trend develop in the market? Many of us look at the market as a single entity that can swing from extremely temperamental to essentially aloof without any warning. However, these backdrop conditions make sense when we view the market as a collective of many different participants with differing trades, expectations and interpretations. In today's Forex Strategy video, we discuss this 'group' view and use it to the analysis of today's FOMC rate decision.
Use the DailyFX-Plus Technical Analyzer to identify possible trade setups.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.