themaestro
Newbie
- Messages
- 5
- Likes
- 0
Can anyone tell me how the volatility of the eurusd changes throughout the day?
Volatility of Forex
- Thread starter themaestro
- Start date
- Watchers 4
tradewinds
Member
- Messages
- 67
- Likes
- 6
You can do an experiment by yourself to find out. What you should do is take the an excel sheet and take the high/low range each hour of the day over the last few years to get an average. Then you could split it into 2 hours and 4 and compare the range with time.
Eg. take the hourly range from 7-8,8-9,9-10 and so on. I would create a moving range from the last 2hours. The same as a moving average works only using the high low range from the last 2 hours. Try different periods, 2 hour,3hour,4hour etc. You can then plot an graph with a moving average of the range. This will let you see when the pair is most busy. At the openings od the major markets you will find thats generally when the pair is most active. As a rule of thumb,7am GMT, 8.30am(economic data releases at this time often), maybe quitens down for an hour or 2 then becomes more active during the European afternoon and US open, 14.30GMT.
Eg. take the hourly range from 7-8,8-9,9-10 and so on. I would create a moving range from the last 2hours. The same as a moving average works only using the high low range from the last 2 hours. Try different periods, 2 hour,3hour,4hour etc. You can then plot an graph with a moving average of the range. This will let you see when the pair is most busy. At the openings od the major markets you will find thats generally when the pair is most active. As a rule of thumb,7am GMT, 8.30am(economic data releases at this time often), maybe quitens down for an hour or 2 then becomes more active during the European afternoon and US open, 14.30GMT.
