Welcome to the Volatility Response Model:

A mathematical model for foreign exchange trading

Introduction

Candlestick charts have been used for trading since the 17th century, when Japanese traders used them for rice contracts.  Our Volatility Response Model (VRM) uses the mathematical relationship between FX candlesticks in one time period and the next time period.  This relationship does not change over time and so we can take one step into the future. Read our theory page to find out more.

Theory >