Forex Daily Volatility Calculator
Calculate forex average true range and volatility from recent daily pip ranges.
Get expected daily, weekly, and monthly movement for any pair.
Forex Volatility and Average True Range
Volatility measures how much a currency pair moves in a given period. For forex traders, daily volatility is expressed in pips — the standard unit of price movement. Understanding typical daily movement helps you set stop-loss levels, choose position sizes, and judge whether a profit target is realistic within a normal trading session.
Average True Range (ATR)
The Average True Range is the most widely used volatility measure in trading. It calculates the average of the daily pip ranges (high minus low) over a set number of periods.
ATR = sum of daily ranges / number of periods
A higher ATR means larger typical daily moves. A lower ATR means quieter market conditions. Enter up to five daily pip ranges (easily read from any charting platform) to compute your ATR.
Standard deviation and the sigma bands
Standard deviation measures how consistently the pair moves near its average. A low standard deviation means each day is similar in size — predictable conditions. A high standard deviation means erratic days — some much larger or smaller than the average.
Interpretation of the bands:
- 1 standard deviation (1σ): roughly 68% of days fall within ATR ± σ
- 2 standard deviations (2σ): roughly 95% of days fall within ATR ± 2σ
If you observe a range far outside ATR + 1σ, something unusual is happening — likely a scheduled news event or macro surprise.
Typical daily ATR for major pairs (approximate):
| Pair | Typical Daily ATR |
|---|---|
| EUR/USD | 60–90 pips |
| GBP/USD | 80–120 pips |
| USD/JPY | 50–80 pips |
| AUD/USD | 60–90 pips |
| GBP/JPY | 100–160 pips |
| USD/CHF | 60–90 pips |
Projecting volatility across timeframes
Daily, weekly, and monthly volatility follow the square root of time rule — because price movements are treated as statistically independent from day to day:
- Weekly ATR ≈ Daily ATR × √5 (five trading days per week)
- Monthly ATR ≈ Daily ATR × √22 (approximately 22 trading days per month)
Practical trading applications
Set stop-loss levels at least 1× ATR from entry to avoid being stopped by normal daily noise. Profit targets of 1.5× to 2× ATR work well in trending conditions. In low-ATR (quiet) markets, tighten position sizing — sudden volatility spikes can expand stops quickly. When ATR is expanding over several consecutive sessions, a trend may be developing. When ATR is contracting for multiple sessions, consolidation is likely preceding a breakout.