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 , ATR can be defined as
. 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: