Archive for the ‘Trading Chart’ tag
Standard Deviation – Why it’s So Important?
(c) Monica Hendrix
Standard deviation is a concept all Forex traders should understand as part of their Forex education. In fact if you don’t understand it and know how to factor it into your trading strategy you are unlikely to win long term. Let’s look at it.
Standard deviation is logical, easy to understand and will help you time entries better and define targets for trades, as well as spotting important trend reversals.
It’s a simple and powerful concept and all forex traders should know how it works and how to take advantage of it.
The real problem that traders have to overcome when trading forex is overcoming volatile price moves that can stop them out to soon or with losses – if you learn how to deal with standard deviation, you will enter with better risk reward and get stopped out less often.
