I have had a very good week in terms of both learning and on my demo account. Still early days but I tend to be winning more than I am losing just now.
I put this down to the fact I am checking a currency pairs past volatility strength before I start trading.
It as left me wondering though, I can tell what pair has in the recent past been more volatile but how do we gauge what is considered high or low?
For example Eur/Usd moves less pips per day than Usd/Sek, So how would I tell what is this most volatile, Would I just look at how much the ATR line is moving up and down compaired to the other or is there some sort of levels I should be looking out for?
There are a number of calculations and indicators that can gauge volatility. You can use ATR and see where the current ATR value is in comparison to it’s historical range. If you have software that lets you do indicator on indicator, then you can add the ATR indicator to your chart and then add a moving average range ( 0 - 100 value ) to the ATR and monitor how extreme the ATR is. If you have ATR on the daily candles with a 30 period, and the range is 90%, that means the current price movement is 90% higher than any time in the last 30 days. It’s just a way to gauge current price volatility relative to a previous period of time.
Now in regards to you mentioning USDSEK and EURUSD, you will almost always have more volatility in exotic pairs because they are naturally more volatile. But I am not sure what value there would be comparing a major to an exotic. If you are looking for opportunity through volatility then I would suggest you look at current price range compared to a period of historical price movement within the pair itself.
Thank you Krugman25 Ill test that out next week. 
1 Like
So, your plan is trading with based on only ATR? Or it’s just one part from your trading system?
Its just part of my system
Wow, then its okay! I thought, you are trading only based on this tool. Keep it up.