The pair EUR/USD is one of the most popular inside the foreign exchange market known as FOREX, (Foreign Exchange). It is one of the most volatile, which grants a potential high place to him of generating high benefits in the short term associated with a level of considerable risk.

A pip is the smallest amount of movement a price quote can make. For example,when EUR/USD moves from 1.2815 to 1.2814, it has moved by one pip.

It is very important to know the behavior of the coins to be able to project the maximum acceptable losses " Stop Loss ", which together with a good money management will allow to execute profitable tradings. Basically it is reduce the risk, and you increase the odds the trades successful. Always have a trading plan.

Let’s take a look the charts.

Here information about price action EUR/USD currency pair.

  • The data is: Bid/Close Price.
  • Interval: 60 minutes.
  • Pair: EURUSD.

Here we can see the behavior of the pair EUR/USD throughout two weeks, in which the market offered us the opportunity to make concrete operations of purchase with benefits that courted the 100 pips as well as also operations of sale with benefits beyond 170 pips. There is posibilities of gaining a few less pips but with a greater likelihood of success. The risk management and a good dose of patience it is very important.

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When looking at the chart above, we can see that in this week, Oct22 to Oct26,

  • EUR/USD maximun movement, 79 pips up. Average: 19 pips.
  • EUR/USD maximun movement, 175 pips down. Average: 62 pips.

This helps guide the risk decision based upon the volatility of pair over the past week..

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When looking at the chart above, we can see that in this week, Oct29 to Nov 02,

  • EUR/USD maximun movement, 113 pips up. Average: 38 pips.
  • EUR/USD maximun movement, 179 pips down. Average: 50 pips.

You can use the pip ranges to determine which stop loss it is best to trade.


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The pips movement range of a pair can help to proper stop loss placement .

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Trading in the off exchange foreign currency market is one of the riskiest forms of investment available in the financial markets . The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.

No more for now, I wish you happy trades
See you soon!


---Written by Salvador López

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