Category: Power Course Trading Tips

FX markets are susceptible to a range of factors which affect their volatility, and many traders look to tailor their strategies to capitalize on the most volatile currency pairs. Currency volatility, often measured by calculating the standard deviation or variance of currency price movements, gives traders an idea of how much a currency might move …

The Most Volatile Currency Pairs and How to Trade ThemRead More

S&P 500 Volatility Index: An introduction Traders should keep a close eye on the ‘VIX’, or CBOE Volatility Index, when trading major indices like the S&P 500. The S&P 500 VIX correlation is a primary example of why the relationship between the stock market and the VIX is referred to as a “fear barometer”. In …

What is the VIX? A Guide to the S&P 500 Volatility IndexRead More

MEASURING VOLATILITY: TALKING POINTS Volatility is the measurement of price variations over a specified period of time. We discuss the Average True Range indicator (ATR) as a measurement of volatility. Technical Analysis can bring a significant amount of value to a trader. While no indicator or set of indicators will perfectly predict the future, traders …

How to Measure Volatility with Average True Range (ATR)Read More

Implied volatility, synonymous with expected volatility, is a variable that shows the degree of movement expected for a given market or security. Often labeled as IV for short, implied volatility quantifies the anticipated magnitude, or size, of a move in an underlying asset. WHAT IS IMPLIED VOLATILITY? Implied volatility is a number displayed in percentage …

Implied Volatility: What it is & Why Traders Should CareRead More

Throughout history there have been a number of extremely meaningful volatility spikes across major financial markets. Each had defining characteristics that made them similar, despite occurring in very different markets and for different reasons. The continuity seen across these volatility cycles is a good thing, because while it doesn’t necessarily make a major volatility spike …

Historical Volatility: A Timeline of the Biggest Volatility CyclesRead More

Core-Perimeter Trading Model Three economic powerhouses are the primary drivers of the global economy: the US, China and EU. Surrounding each of these growth nodes are perimeter economies that strongly rely on the performance of the core. These are typically export-oriented countries whose fortunes oscillate with greater frequency and magnitude to changes in the global …

Core-Perimeter Trading Model: US, Eurozone & ChinaRead More

AUD and NZD Analysis, China Trade Relations With Australia and New Zealand, Understanding the Core-Perimeter Model -TALKING POINTS: How to trade the Australian and New Zealand Dollars with regard to China’s growth What are the economic and trade relations between China, Australia and New Zealand? How the China, Australia & New Zealand relationship fits into …

How AUD & NZD Exchange Rates Are Impacted by China’s EconomyRead More

Using Sentiment, IGCS in a Long-Term Trading Strategy Market conditions can last for extended periods of time, especially when analysed in the context of how well/poorly the underlying economy is performing. An expanding or contracting economy can guide or inform future monetary policy that is likely to have an effect on the forex market over …

Long-Term Trading Strategies with IGCSRead More

Hunting for Breakouts with Sentiment The IG Client Sentiment (IGCS) tool helps traders identify potential breakouts in order to enter a developing trend near the start of the move. Breakouts can result in a large, extended move or simply fail to extend and fall back within the existing price range, known as ‘fakeout’. This article …

Trading Breakouts with IG Client SentimentRead More

Trading trends with IGCS IG Client Sentiment (IGCS) is a tool used to represent client positioning amongst IG retail traders live accounts across a range of markets, including major currency pairs, commodities, cryptocurrencies and stock indices. This article will discuss the use IG Client Sentiment (IGCS) for identifying and implementing trend trading strategies. Advertisement IGCS …

Trend Trading Strategies with IG Client SentimentRead More