When trading forex, a lack of volatility makes it hard to trade because there simply isn’t sufficient movement for making profits.  Instead, markets tend to spike in one direction only to reverse and spike in the other direction.

Trading Forex – Lack of Volatility

In this video, Gail Mercer, founder of TradersHelpDesk, goes through most of the major currencies and shows how the ATR Support and Resistance immediately shows when not to trade the markets. In this case, the ATRs are split and too close together to take profits.

For example, the EURUSD has a pennant forming (indicating a downward move) but it isn’t complete yet.  The GBPUSD has been stuck in a congestion zone since yesterday afternoon.  The AUDUSD is simply not moving (even showing gaps on the 15-minute chart.  The only currency that seems to moving is the USDCHF, which doesn’t have 2-hour binaries available until 8am and potentially the USDCAD, which is showing that it is oversold (using the RSI) on the 240 minute chart.