From a trading perspective, both charts have a familiar look-and-feel for the months of 2010 if we follow market prices for each with an eye to their respective RSI momentum indicators and Stochastic curve sets. As expected, both sets of indicators signal Buy and Sell trades if you abide by the straightforward strategy of buying on bottoms and selling on peaks. As with any indicator, its reasonableness has to be questioned on occasion. Holding periods may vary for individual positions as dictated by volatility. 

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

That brings us full circle back to the subject of volatility. There was recently an unusual case for currencies. Volatilities  accelerated, but have since relaxed. Volatility deserves special attention because it helps a Trader sort through layers of analysis and guidance provided by industry experts and then focus on his main objective, to make money. It is calculated in two ways. Reviewing past pricing patterns yields historical volatility. More importantly, a Trader is concerned about future expectations and will generally seek insights from the premiums charged in the options market. This approach is called the implied volatility.  

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