How do you measure volatility of a currency or pair?

Beginner Questions
1

Are there indicators that help you figure out volatility, or do you guys use websites that figure out some stats or provide charts for you?

Tradingview has an indicator called historical volatility, but I don’t know how to read that data point.

Do you track it? If so, how?

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2

Look at the indicator called ATR (Average True Range), it gives you a very good idea of how far the currency moves in a given time period.

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3

I use MACD and RSI as well.

4

Check ATR as @igillman suggested, good option could be kaufman efficiency ratio

5

I have the 28 major pairs by their total recorded historical volatility. This is looking back over various periods of time for each pair but it is decades in all cases. Figures are from Sharescope -
AUD/JPY 0.95
NZD/JPY 0.95
AUD/CHF 0.81
CAD/JPY 0.80
NZD/USD 0.80
GBP/JPY 0.74
EUR/JPY 0.72
CHF/JPY 0.71
AUD/USD 0.69
CAD/CHF 0.69
GBP/NZD 0.69
EUR/AUD 0.68
GBP/AUD 0.68
EUR/NZD 0.66
USD/CHF 0.66
GBP/CHF 0.64
EUR/USD 0.62
USD/JPY 0.61
GBP/USD 0.60
GBP/CAD 0.59
NZD/CHF 0.56
NZD/CAD 0.55
EUR/CAD 0.54
USD/CAD 0.54
EUR/GBP 0.51
EUR/CHF 0.48
AUD/CAD 0.48
AUD/NZD 0.41

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6

I always follow the combination of moving average and RSI and they give me a better market forecast.

7

To measure forex volatility, I rely on three indicators including RSI, MACD and Moving average.

8

I’ve been reading more about this. I knew it existed, just wasn’t exactly understanding the real meaning behind it. Thanks!

9

Are you doing just when looking at a single pair? Like what about comparing different pairs? Does that still work?

Wow! So on what time frame are you recording?

10

Its all D1.

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11

ATR - Average True Range

12

It works on all pairs. MACD setting 3 -10 -16 histogram bars which is superb for following the candles to entry and exit - & RSI 10 setting with a 50 line only. Above = buy & below = sell.

13

Is that for fast, slow and smoothing settings?

14

So if I wanted to only trade pairs with high volatility or not trade pairs with low volatility, I would look at the daily ATR/RSI/MACD and then what, compare today’s to yesterday’s or last week or maybe the previous couple hours? Or just some specific level?

People say, “Stick with high volatility pairs…”. I’m trying to figure out from what perspective I should look at volatility.

15

Volatility is definitely a key player in the trading game. There are plenty of indicators that can help gauge volatility, like the Average True Range (ATR), Bollinger Bands, or even the VIX if you’re into stocks. And I personally use TradingView too, and their historical volatility indicator can be super helpful. Basically, it measures how much a market’s price is changing for a set number of past trading days. Higher values mean the price moves a lot day-to-day, which could signal more risk or potential for profit.

Still, no indicator is foolproof, so I always try to use them in combination with others and consider the bigger picture.

16

Yes, that’s correct. And confirmed by looking at the app on the chart which should be as the above.

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17

Trading View is a popular platform that offers various technical analysis tools to help traders analyze market trends and volatility. Trading View also offers a community of traders who share their analysis and ideas, which can be helpful in understanding market volatility.

18

Volatility for currency pairs is available on our MarketMilk tool, EUR/USD Volatility Calculator and Analysis - MarketMilk™

There’s a lesson in the School of Pipsology, “How to Measure Volatility”

19

During volatility, the market usually moves fast and RSI and MACD can help you catch the market volatility.

20

you could use an ATR 34 period on a H4 timeframe. it shows you the average vola of one trading week

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