Volatility
How much and how quickly price moves. In forex it is often measured by the average daily range in pips or the ATR.
With real data
Most and least volatile pairs (avg daily range as % of price, 90 days)
Calculated from price data up to 6 October 2026.
In practice
GBP/JPY typically moves well over 100 pips a day while EUR/GBP often moves under 40. The same 20-pip stop is generous on one and almost certain to be hit on the other.
Using one stop distance for every pair. Set stops relative to each pair’s normal range.
Related terms
Average daily range (ADR)
The average distance in pips between each day’s high and low over…
Average True Range (ATR)
A volatility indicator that averages the true range, which…
Bollinger Bands
Bands set two standard deviations above and below a moving…
Seasonality
A tendency for a market to behave in a certain way at certain…
Average Directional Index (ADX)
An indicator of trend strength, not direction. Readings above…
Break of structure (BOS)
When price breaks a prior swing high or low, signalling a trend…