Introduction:
This article is about the use of Average True Range and pip value calculation for batter choice of forex currency pair for trading. We often use ATR to know the volatility of any currency pair and go for the trade with high ATR or whatever our trading plan is , but there is another point that we must keep in our minds is pip calculation. By using ATR and pip calculation, we will try to find batter currency pairs for trading.

Average True Range:
According to Investopedia [1], ATR can be defined as

current high less the current low,the absolute value of the current high less the previous close and absolute value of the current low less the previous close. the average true range is the moving average, generally 14 days, of the true range

. we can find ATR indicator in JFOREX Platform charts, under indicators menu in volatility indicator sub menu.

so we can find ATR of desired currency pairs using JFOREX chart indicator, as shown above, I set 21 days period for today i.e
11-10-2016.You can set any other period in indicator as you want

Commonly Traded Currency Pairs present ATR:
2. AUD/CHF 0.0065
3. CHF/JPY 0.9757
4. EUR/CHF 0.0046
5. EUR/GBP 0.0091
6. EUR/JPY 1.054
7. EUR/USD 0.0071
8. BP/AUD 0.0202
10. GBP/CHF 0.0141
11. GBP/JPY 1.95
12. GBP/NZA 0.0217
13. GBP/USD 0.0148
14. NZD/USD 0.0077
16. USD/CHF 0.0072
17. USD/JPY 1.01
As per google [2] definition of pip is,

Pip= price interest point, A pip measures the amount of change in the exchange rate for a currency pair. For currency pairs
display to four decimal places, one Pip is equal to 0.0001. Yen-base currency pairs are an exception and are displayed only two decimal places (0.01)

so we can read AUD/CAD ATR is 71 pips per day on 21 days average and CHF/JPY ATR is 97 pips per day on 21 days average
till now we have one element of our calculation that is ATR. now come to another part that is pip value.

Pip value calculation:
Every currency pair has different pip value so we have to consider this element too with our quest to find a good pair to trade. It is easy to find out any pair pip value ( actually all instrument of Dukascopy offer to trade) at this page of Dukascopy site [3]

You can change values of pip amount, Instrument, position size, and account currency.

let start the calculation:
Put ATR value in the Pip amount field select instrument which ATR value is used, and let standard 1 lot value stay in position size field.(you can change it to any value you want) and account currency as you preferred I use USD for example. we will calculate the above mention pair for example purpose you can explore as many as you can.

1. AUD/CAD 0.0071 536\$
2. AUD/CHF 0.0065 668\$
3. CHF/JPY 0.9757 936\$
4. EUR/CHF 0.0046 465\$
5. EUR/GBP 0.0091 1114\$
6. EUR/JPY 1.054 1013\$
7. EUR/USD 0.0071 710\$
8. GBP/AUD 0.0202 1524\$
9. GBP/CAD 0.0193 1460\$
10. GBP/CHF 0.0141 1427\$
11. GBP/JPY 1.95 1882\$
12. GBP/NZA 0.0217 1531\$
13. GBP/USD 0.0148 1480\$
14. NZD/USD 0.0077 770\$
15. USD/CAD 0.0107 809\$
16. USD/CHF 0.0072 729\$
17. USD/JPY 1.01 975\$
Base on above calculation GBP/JPY is found to be good pair to trade.There are many other factor that trader can consider before entring the trade i.e spride, time zone, most active time of a pair etc

conclusion:
choice of Forex currency pair for trading is a vital part of the trading strategy, with the combined use of ATR indicator in Jforex charts and pip calculator tool of the dukascopy website, gives an edge to traders for the batter and profitable trades.

References:
Traduire en Anglais Montrez l'original