This strategy uses the volatility indicator to place trades based on increases in short term volatility. The strategy compares the volatility indicator to a moving average to define periods of increased volatility. When the volatility reading crosses the volatilities moving average, volatility is defined as up and a trade is placed.
When volatility is up, an entry to buy is placed at the upper price channel, and an entry to short is placed at the lower price channel. If volatility is not above the moving average, then no entries are made.
This strategy was created by James Stanley of the DailyFX.com course department.
Category FXCM Strategy Trader (hidden)
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