Forex Volatility

[Upintheair]

Something that may be of use to a few traders is knowing the volatility of certain pairs or all pairs. If you have a certain favourite pair, how well do you know it? What is the best day in terms of movement? Time? All of this can be answered by a great website displaying easy to digest information.

Here is a sample over a 12 week period:



It's worth noting that whilst AUDUSD has a smaller daily pip range than say GBPUSD (55vs96) in relation to % of the price they are both exactly the same at 0.74 and 0.74 respectively. This shows that whilst the size of the range is important, it has to be looked at in context of the overall price.

You can also see how important time of the day is to certain pairs. Look at Cable prior to 6AM GMT...



Post 6am GMT volatility practically doubles until 3pm GMT. Could you exploit the lower volatility during the early hours?

Have a play and see if you could find any interesting tidbits to help your trading.

Have a look here.

[Admin]

A fantastic post, thank you, Upintheair.

[Wull]

Echocing John's sentiment, a great first post. Do you use any of the information in your trading Upintheair?

[Upintheair]

Echocing John's sentiment, a great first post. Do you use any of the information in your trading Upintheair?

Hi Wull, yes I do. I like to track a mixture of volatile pairs and pairs that display low volatility and treat each of them different depending on their behaviour. Once you get to know a pair it does make it a touch easier to know what you're dealing with.