Forex currency volatility

Currency volatility depends on the forex market's trading hours, macroeconomic announcements and the liquidity of each currency. Depending on your trading style, or the time of day that you typically trade, volatility analysis can be a major selection criterion when choosing which currency pair(s) to trade. For example: short term investors such as scalpers wil pick currency pairs which feature both a low spread and a high volatility.

Formula: Variation = Average (High - Low)

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