Get Forex volatility in real time
- Thread starter Youss27
- Start date
Welcome to ET.
It depends what you mean by "market".
If you're trading spot forex against a counterparty "forex broker", it's their own product's volatility that's perhaps relevant to you, since that's the one you're trading? Some brokers give volume "information" (but it's only their own volume - which may have very little to do with the interbank spot forex market, for which such parameters are not monitorable because there's no centralized exchange).
Simple parameters like "ATR" can be an indication of volatility, though.
The nearest I ever got to looking at the kind of information I think you're asking about was to look at the volatility and volume for the front month of the corresponding forex futures. This information is available, and reliable (and very low-cost, but not free). That was helpful.
Then again, not all forex pairs traded against counterparty brokers have a "corresponding future", of course.
It depends what you mean by "market".
If you're trading spot forex against a counterparty "forex broker", it's their own product's volatility that's perhaps relevant to you, since that's the one you're trading? Some brokers give volume "information" (but it's only their own volume - which may have very little to do with the interbank spot forex market, for which such parameters are not monitorable because there's no centralized exchange).
Simple parameters like "ATR" can be an indication of volatility, though.
The nearest I ever got to looking at the kind of information I think you're asking about was to look at the volatility and volume for the front month of the corresponding forex futures. This information is available, and reliable (and very low-cost, but not free). That was helpful.
Then again, not all forex pairs traded against counterparty brokers have a "corresponding future", of course.
A few thoughts:
• look at your chart; is price moving fast with sudden jumps; it's volatile.
• look at the news/headlines; for most pairs it's volatile at the moment, because they agreed on some sort of Brexit agreement.
Watch for key economic data coming out.
• never assume that a market is or should be volatile, because of the time of day.
It could be in some congestion or wedge, waiting for a breakout.
• try ATR or ADR to measure the range relative to the last ... days or hours.
• look at your chart; is price moving fast with sudden jumps; it's volatile.
• look at the news/headlines; for most pairs it's volatile at the moment, because they agreed on some sort of Brexit agreement.
Watch for key economic data coming out.
• never assume that a market is or should be volatile, because of the time of day.
It could be in some congestion or wedge, waiting for a breakout.
• try ATR or ADR to measure the range relative to the last ... days or hours.
L
lovethetrade
Is the volume done through Oanda large enough to be a reliable indicator of relative volume for the overall spot forex market?
In my opinion it's large enough to be a reliable indicator of relative volume for the overall retail spot forex market (but that's not, of course, the "overall spot forex market" or anywhere near it).