Hello,
I’m a bit confused about something. I’ve read that the average daily pip range for EUR/USD is usually between 70-100 pips. However, when I look at various days on TradingView, the high/low range seems to be closer to 40 pips.
Am I missing something?
Thanks!
Every day will be different (obviously). For that inquiry, you can use the Average True Range (ATR) indicator on the Daily chart. That will tell you the average range per # of period the ATR is looking back at.
Ie; Daily chart where every candle/bar is 1 day, ATR(20) will give you the average range of the past 20 days.
On the ATR(14), I’m seeing ~59 pips.
Oops, my mistake. I didn’t consider the word “average” nor x number of days. It makes sense now.
Thanks!
Just make sure you’re on the Daily chart. If on the 1hour chart, you’ll have the hourly average, for example.
The ten week moving average for daily movement is roughly 80 pips but there will be days of low volatility which is especially true during the sleepy markets. A few things might be contributing to the lower pip range you’re seeing: market trend, time of the day and analysis of the charting patterns. Perhaps, the 70-100 pip range which you have read, is an average for a day or a week or during some other period of time, or is an average for more volatile market. Does that make sense?
that is it! average; and also remember that you cannot use such data for your trading strategy, the changes differ a lot each day.
pls can anyone explain what pips generally means thank you
PIP= point in percentage; in simple words the second smallest number that you see in a price chart is the pip
In Forex pair prices, a pip is represented by the 4th decimal digit, except in any pair including JPY, in which case it is the 2nd decimal digit.