# Average hourly volatility

Is there a way to find the average hourly volatility of a pair?
Or is this ATR divided by number of hours?

First Wilder defines the True range, or TR, determined as maximal of the following 3 values:

• absolute value of a distinction between ongoing maximum and the previous close price;
• absolute value of a distinction between ongoing minimum and the previous close price;
• distinction between an ongoing maximum and an ongoing minimum.

If the distinction between a maximum and a minimum is rather little, most likely other two aforesaid methods will be used for TR calculation.

If the range changes inside of the period, a distinction between a maximum and a minimum, is rather big, most probably TR will calculate from it.

As a rule ATR with 14 periods is used.

[B]It’s calculated both on a one-day basis, and on day-time or week and even monthly basis.[/B]

ATR can’t predict a duration or direction of changes.

During a long period of ATR can be late, specifying not ongoing but previous inconstancy.

Hourly ATR will suffice, and you don’t need to divide it by anything because it’s already an average. Be cautious, though, when dealing with low volatility periods (like between US and Asian trading).

There is another method of measuring average volatility. But you would have to do it manually in a pre-defined time frame.

You watch the widening range between low and high prices every day. On the whole, a progressively wider range, watched during a relatively short period of time, depicts that a bottom is close. Usually price peaks are reached in a slower tempo and are characterized by the price range narrowing.

This calculation of the trading range takes place over a [B]certain time-period[/B] for defining if an issue is being “dumped” and is approaching a bottom or not.

A rise in the volatility line over the reference line is a supposition to a valid bottom. In the same way, an indication of an inevitable peak would be a decrease in the volatility line below the reference line. As long as inconstancy is growing, a pair is not likely to reach the top.

It’s important to remember that this study should be used together with trend following analyses and momentum oscillators for precision and confirmation.

There are two ways to interpret this measure of inconstancy. The first method states that market peaks are usually followed by growing inconstancy and market bottoms are usually followed by decreased inconstancy.