ATR indicator shows halved volatility in the Forex Market

The ATR indicator is one very often used to measure the volatility in the Forex Market. It measures the Average Range of candle in the time frame trades. Range is the difference between the candle high and the candle low. In other words it measure the average distance the price moves during a particular time frame. It the distance is bigger than that of another currency it means that the currency is more volatile and moves more than the other currency. The ATR indicator also can show us how the volatilty of one currency changes over time.

The ATR indicator was discussed in a previous posting http://expert-4x.com/forex-good-vibrations-and-the-average-true-range-indicator

Recent daily readings of the ATR indicator for major currencies show that the Forex market volatility has halved in the last few months. The market maybe less volatile due to increased worldwide uncertainty or the currencies maybe more managed than before. I would be interested to hear some opinions.

What this means to us as technical Forex traders is that the days of the common intra day 100 pips runs in the Forex Market are highly reduced. major currencies barely have a total daily range of 100 pips. Currencies appear more protected and will not trend as much as before on a intraday basis. Therefore late breakout systems relying of big runs will be less effective.

The good news is that retracement systems like channel trading as found in the Long Candle Course and vibration rate trading as used in the Good Vibrations system will be more effective.

Below are some ATR Indicator volatility chart of the major currencies in the Forex Market

EURUSD ATR Readings

THE USDCHF ATR Readings

GBPUSD ATR Readings

USDJPY ATR readings

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