British Pound / U.S. DollarEducation
GBPUSD reacting well to volatility trading strategies
According to marketkolor.com, analysis suggests that Volatility Trading strategies would likely be most successful at present. With market volatility proving critical for trader profitability, it is important to understand how it is relevant and how to trade it. The key factor is how rapidly prices are moving. The speed or degree of change in prices is called volatility. As volatility increases, the potential to make more money quickly also increases. However, higher volatility also means higher risk. Adjust you trading style and risk management to suit the volatile price action. Consider using shorter term, breakout strategies and wider stops.This is in comparison to Trend Trading strategies which may have worked better last month.Conversely, our analysis suggests that Trend Following Momentum Trading strategies would most likely be unsuccessful at present.
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