Forex Volatility Analysis
Our volatility analysis system uses Average True Range (ATR) calculations across multiple timeframes, combined with statistical analysis to determine the current volatility regime. The data is processed and categorized into levels from "low" to "extreme" based on historical percentiles, allowing immediate comparison between different forex pairs. Each pair is also placed against its own recent history, so you can tell a wide range that is normal for that pair from one that is unusual for it — the reference for sizing stops and targets.
Currency Pair Volatility
Understanding Volatility Data: Each card shows the Average True Range (ATR) in the unit of that market — pips for currency pairs, points for gold — representing the expected price movement over one bar of the selected timeframe. The volatility bar places that reading against the pair's own last 30 readings on the same timeframe (30 sessions on Daily, five days on H4; on H1 the comparison is with the same hour of the day over the last three weeks, so the intraday cycle of volatility does not read as a regime), categorized from low (below the 25th percentile) to extreme (above the 90th). Thirty consecutive readings of a 14-period average are few and move together, so the percentile is a coarse gauge of "unusual for this pair", not a statistic. The ranking and the comparison chart below use the ATR as a percentage of price, the only scale on which gold, yen pairs and the rest can be compared; the number on each card stays in the market's own unit, which is what you size a stop with. Use higher timeframes for swing trading decisions and lower timeframes for intraday positioning. Consider wider stops for high volatility pairs and tighter ranges for low volatility ones. Data is recalculated several times a day from real price data.
Volatility Comparison
Background reading
From our blog, on what this page measures.
