I am new to forex and still learning, I have heard this will help alot in deciding your position, so I wana know how to determine the daily pip range of pair… I know I have to crosshair and drag, but is there any method to determine how much range will the pair have the next day…
No, none whatsoever.
okay, then any way to atleast guess how much the pair will range
If that was possible, EVERYBODY would be a trader…
Try looking at the ATR indicator. It averages the daily range over a period of time. But again, it’s an AVERAGE, not a predictor. There are extremes both ways that get smoothed out.
Thank you, I guess I have found my answer
Hello Muneeb,
- There is no method that can predict the range of a specific pair the next day
- However, understanding the average range of the pair in specific number of days say last 5, 10 or 30 days can give you an idea the probable range of the pair. But as you know, trading is all about probabilities.
- Why don’t you do your own homework (if you use MT4), save the specific pair D1 timeframe as CSV and open it using excel and calculate each day’s range and calculate the average based on your own requirements.
You could do it his way which works well. but if you use mt4 just use the mighty power of google and find a ADR (average daily range) indicator. Or as mastertang said the ATR average true range (I think thats what its called) indicator. Most MT4 have one of these 2 on them on not you can find them all over the web and download it to mt4 to use. I am not really sure of the difference between the 2 indicators as I dont really use either of them. Good luck hope you find what you are looking for but dont expect much from these.
Yes we can you ATR to predic the daily range. But still markets are really intelligent. And we simply cant rely on ATR alone
Come on, don’t hand open ended queries like this to me on a plate…and the answer is a no, but that has not stopped the rest of us looking for something that can effectively predict the range, sigh