Sunday, November 16, 2008

Index Daily Ranges in extremes

Below are screen captures of the DOW and some of the main currency pairs showing clearly how the daily ranges have way exceeded their 'typical' bounds. Due to these huge swings, trading strategies and settings must be altered until once again the indexes return to a more 'normal' pattern. (DOW is a 4 Hour chart, the others are Daily timeframes.)
These charts were created using the MetaTrader 4 platform, the Average True Range indicator with a period of 3 and applied Simple Moving Average with a period of 12.