How does the OHLC affect currency price?
Best insight from top research papers
The OHLC (Open, High, Low, Close) data can affect currency prices in various ways. One study found that if the spot price of a currency follows a random walk with no drift, it can be a better predictor of the future spot price than the futures price . Another study analyzed the performance of a currency strength indicator and found that changes in currency strength can be used to create a profitable forex trading system . Additionally, research suggests that currency stop-loss orders can contribute to rapid, self-reinforcing price movements, or price cascades, in the foreign exchange market . These price cascades may help explain the high frequency of large exchange rate moves and the fat tails of the distribution of exchange rate returns . Overall, the OHLC data can provide insights into currency price movements and can be used in trading strategies and risk management techniques.
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| Papers (5) | Insight |
|---|---|
01 Nov 1977 | The provided paper does not discuss the effect of OHLC (Open, High, Low, Close) on currency prices. The paper focuses on the impact of import price changes on domestic inflation rates in five large industrial countries. |
70 Citations | The provided paper does not directly discuss how the OHLC (Open, High, Low, Close) affects currency prices. The paper focuses on the impact of stop-loss orders on price cascades in currency markets. |
Open access•Posted Content 3 Citations | The provided paper does not directly discuss the impact of OHLC (Open, High, Low, Close) on currency prices. |
26 Feb 2018 2 Citations | The provided paper does not discuss how the OHLC (Open, High, Low, Close) affects currency price. The paper focuses on analyzing the effect of currency strength changes on their future price movement. |
1 Citations | The provided paper does not discuss how the OHLC (Open, High, Low, Close) affects currency price. The paper focuses on the prediction of future spot prices and trading decisions based on the relationship between spot prices and futures prices. |
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