Average Daily pips movement

How do I determine how many pips a particular currency pair moves on each day on Average?

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Hi! This is a very good question. As I was looking for an answer a few weeks ago myself, it has a lot to do with the volatility of the cross. FX volatilities you can find on many sites, for example here. The problem is that it depend on the time frame and of course also on the particular day of the week. Mondays would be slow, while Tuesdays and Fridays can be crazy. Are you averaging over a year, a month, or a week?

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@Maximus_martins Use the Average True Range indicator. You can set it up to get the pip range average for any set period of time you want.

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You can find this mt4 indicator out there somewhere on google.

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I wonder how relevant this question is ?

Certainly volatility on some pairs far exceeds that on others, But whether “Average” volatility is a great help I find quite dubious.

If you’re trading daily, or weeklies, then it may be a help in setting SL levels, but is an “average” helpful when the charts are sometimes trending and sometimes in “congestion”?

I think it could perhaps be interesting to construct a “Bell curve” of individual daily ranges, but whether it would be helpful to “Average” all those figures into a single number ?

I think that may be placing too much reliance on a number which is escaping from the reality ! :slight_smile:

What is the name of the indicator? Thanks

It seems useful to me to have some idea of how much charge is left in the battery, I don’t remember the original name of the indi. I made some changes to it and renamed it. I’ll look for it or maybe I can upload it.

DailyRangeIndi.ex4 (14.1 KB)
I don’t know if this will upload or not. That’s from my metatrader 4 don’t know if it will work on 5.

Thanks man, I’ll try it out.