Forex Average Daily Range 2018

If you are looking to day trade the major currency pairs, information technology is imperative that you try to trade those pairs that take a decent amount of volatility.

That's considering yous volition mostly detect that it is so much easier to trade a pair that trades within a big trading range every day and makes strong moves upwards or downwards, rather than i that barely moves and has limited price swings.

So with that in mind, I desire to accept a look at the average daily trading range of all of the major forex pairs right now in May 2018 because this will requite y'all an idea of which pairs are worth day trading (go on reading to view the latest figures for October 2018).

Here is the latest ATR (average true range) reading for all of these pairs, and for some of most popular indices, commodities and cryptocurrencies:

AUD/USD – 49
EUR/CHF – 67
EUR/GBP – 43
EUR/USD – 78
GBP/USD – 84
GBP/JPY – 123
USD/CAD – 76
USD/CHF – 48
USD/JPY – 63

FTSE 100 – 67
DOW JONES – 239
NASDAQ – 85
S&P 500 – 25
BRENT Crude – 140
CRUDE OIL – 129

BITCOIN – 379
BITCOIN Cash – 114
ETHER – 47
LITECOIN – 9

With regards to the currency pairs, the AUD/USD, EUR/GBP and USD/CHF are some of the hardest to trade, equally is then often the case, because these all have trading ranges of less than 50 pips, which makes it very hard to consistently make coin from curt-term trades when y'all take business relationship of the spreads per trade.

However there are several pairs that have trading within decent trading ranges. The GBP is very volatile at the moment, so many GBP pairs are worth a look, and the EUR/USD and USD/CAD pairs likewise accept an average trading range of 78 and 76 points respectively, which is not bad at all.

Elsewhere, the Dow Jones has an average trading range of 239 points, which ways you lot could potentially brand some decent returns if you call the direction right, and the oil markets have too been quite volatile in recent days, which presents some decent brusque-term trading opportunities.

Finally, the major cryptocurrencies have taken a hit in recent weeks and have decent trading ranges, but until the spreads tighten up considerably, they are not really a viable day trading musical instrument at the moment.

Updated Trading Ranges for October 2018

I accept only been looking at the very latest trading ranges correct now in October 2018, and if you lot compare the latest figures to the figures from May (shown in brackets), there are some interesting findings:

AUD/USD – 46 (49)
EUR/CHF – 55 (67)
EUR/GBP – 43 (43)
EUR/USD – 64 (78)
GBP/USD – xc (84)
GBP/JPY – 118 (123)
USD/CAD – 63 (76)
USD/CHF – 45 (48)
USD/JPY – 57 (63)

FTSE 100 – 93 (67)
DOW JONES – 343 (239)
NASDAQ – (138) 85
S&P 500 – 37 (25)
BRENT CRUDE – 171 (140)
CRUDE OIL – 155 (129)

BITCOIN – 162 (379)
BITCOIN CASH – 25 (114)
ETHER – ten (47)
LITECOIN – 2 (9)

You volition immediately notice that the average daily trading range is roughly the same for all the major currency pairs.

In fact in most every case the volatility has reduced ever so slightly. The only exception is the GBP/USD which currently has an increased average trading range of 90 points, making it a good pair for twenty-four hours traders to trade.

It is the other figures that really stand out. Yous will see that after the heavy stock marketplace falls, volatility has increased by around 50% on the major US stock markets and the FTSE 100, equally shown in the chart below:

Similarly, as a result of the recent autumn in oil prices, the volatility of Brent and The states crude oil has too increased quite considerably, although not quite as much as the major stock markets.

Finally, it is interesting to look at the latest figures for some of the major cryptocurrencies because you tin can see that volatility has dropped off massively since May.

Bitcoin now has an average range of just 162 points right now, making it almost incommunicable to day trade because of the large spreads offered past many brokers, while the other cryptos quoted are approximately 25% every bit volatile every bit they were earlier in the year.

So at this moment in fourth dimension, it is the oil markets and the major stock market indices that are the most volatile, and therefore the almost suitable for day traders to trade right at present.

If you lot are interested in day trading, information technology is of import to use a broker that has tight spreads and fast execution, and FXTM satisfies both of these criteria, with spreads starting from 0.1 points on ECN accounts and 0.5 points on Standard accounts.

Forex Average Daily Range 2018,

Source: https://www.theforexchronicles.com/average-daily-trading-range-of-the-major-forex-pairs-in-may-2018/

Posted by: buidelps1967.blogspot.com

Share this post