How do you determine the volatility of a pair? low,med or high - Page 3
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Thread: How do you determine the volatility of a pair? low,med or high

  1. #21
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    Quote Originally Posted by ;
    what would be the indiors? How do you quantify it? I tend to have much more success in volatility that is low to medium and then I get stopped out because of vol. I do not enjoy high vol swings. Countless pips in minutes, etc. I do not wish to exchange during that moment.

    Please help. thanks.
    Sed, I find that this volatmeter coded by Damiani really beneficial.
    I'm not on my main PC now where I have information saved relating to this but you could try to google or visit

    Hope that helps

  2. #22
    There is some significant classical rules of determining win/reward ratio, sl, tp, b/even, mm - in next thread
    The legend of the Gambler
    p.s. appears like it's saturday, gentlemen

  3. #23
    Quote Originally Posted by ;
    Sed, I find that this volatmeter coded by Damiani really beneficial.
    I am not on my main PC at this moment where I have information saved about it but you might attempt to google or see

    Hope that helps
    ah guy. This looks great. I see transactions to avoid even though the rules match up.


  4. #24
    Quote Originally Posted by ;
    ah man. This looks great. I already see transactions to avoid even though the rules fit up.

    I am happy if it would help you Sed.

    Let me know how it works out.

  5. #25
    Here's a sophistied volatility calculator I generated over a year ago.


    everyone but is welcome to check it out.

  6. #26

  7. #27

    Unless you're the broker, the market price has to move in order to profit from it. Understanding why and when prices are volatile and when to expect volatility (not only the customary news announcement) will offer a better environment where to exchange or not, specially when price is behaving abnormally (this can also be regarded as low volatility when it should be active).

    Definition of volatility may not be best answered by average bar size independently. But the entire distance traveled within a specific period of time. Price is able to move very fast back and forth within a specific small range prior to a breakout or trying to split support/resistance showing up as a small bar or doji, or float slowly in one direction painting a wonderful candle, how could you view each historically if you were not there to witness each respective candle as it shaped.

    An actual market volume, (order size ) is needed to correctly visualize a candle#8217;s volatility. Unless your trading futures, there's absolutely not any true market volume, just tic volume for place = # of price changes within the period.

    If you're looking historically, throwing a Tic volume on the ATR indior might aid you as both should spike when things are moving.

    But as a help, learn to embrace the volatility, looking for it. . The market moves in a string from accumulation to distribution, consolidation/range to urge and back again. Each has it#8217;s character and ways to profit.


  8. #28
    An extra point (not positive if it was created already) is that the term average true range means it accounts for gaps, though they're a rarity in forex.

    However, for noobs true range would be

    a) the gap of todays high to low or
    b) the gap from the last near todays low if there was a gap down opening or
    c)the gap from the last near todays large if there was a gap up opening.

    ATR would then be average of True Range over X number of bars.

  9. #29
    Quote Originally Posted by ;
    I have to understand how to go from numbers and theory to training. The way to apply it.
    The best way to apply the ATR indior, as for almost any indior, or another form of quantifying volatility will probably be quite subjective. Whether intentionally done or not (by the big guys?) Things rarely repeat themselves in an orderly way. They repeat in a sort, but more frequently it is hindsight that understands the repetition, not real practice as you are concerned about.

    OpenOffice Spreadsheets (or Microsoft if you've got it) would probably be a better bet to look for patterns. High volatility v. low volatility can offer an elaborate pattern of overall price movement, but nothing that cant be viewed without a lot of digging.

    In terms of your first question, which is in your name, choosing the daily average range within the last few decades and comparing it to the previous week will inform you where the volatility compares. As Johnedoe mentioned, we were in major volatility when all was falling. So, although you may not be given a direction by volatility, it might provide you warning that things will move fast and far. Whether it is still volatile after you get in is just another discussion entirely.

    ----- I really feel like a part of a circle in a playground within this thread chanting Fight... fight... fight. Seriously, trendy it folks. Being angry wont help anything.

  10. #30
    When daily volatility is high, trends take less time to finish. Should you use a trend-based system you want to adjust it to shorter TFs to compensate. Doing this, however, exposes you to intra-day whipsaws, which is why a lot of people simply avoid very high current volatility.

    For intra-day traders, however, high volatility is precisely what's required.

    For the former you can conduct sets of daily ATR(7). If the 100 avg is lt;= into the 365 avg, or some relationship there-of, commerce. For the latter, inverse it.

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