Please tell me how to see big volatility with MT4. I need to recognize moments, when floating spreads are widening. I saw once one indicator. I trade with fixed spread. Also violency means special, full candles?
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Joined Oct 2011
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Status: 'Trading Since 1988'
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Volatility - i think this is what you are asking about. There are a lot of factors that can increase volatility within any given currency pair, i would always advise any newbies to pick their pairs very carefully to start with. Some pairs are clearly much more volatile than others which can affect the way your system performs. The best way to spot volatility is to look at the daily range of the given pair.
It is important to remember lots of the volatility is based on fundamentals, i.e news. If you keep your eyes on the scheduled releases then you can avoind news driven spikes etc, however some releases are not scheduled and can have an adverse effect on the market. My advise would be to try and trade the less volatile pairs to start with.
Hi Vaidass, I'm sorry but I don't think the word 'violency' exists in trading, a google search of the term with forex only shows up this thread.
Here is a spread monitor you can use to see when spreads are widening.
If you want a volatility indicator to show when the market is beginning to make larger moves, then use expanding Bollinger Bands or the ATR with a moving average on it like in the pic.
And System32, that ADR pic of currency pairs is years old, the current ranges are much, much less.
Hold on, if your broker feeds you fixed spread prices, the spread monitor will become flat, as the spread is fixed, so to use it properly you'll need to apply it to an account without fixed spreads.
Well, the broker standard is to provide floating spreads, it's unusual to provide fixed spread.
I won't single out any broker but any of the brokers listed in the broker thread would have floating spreads with demo accounts where you can try out the spread monitoring idea.
The term in question does not exist and apart from that, most brokers do offer demo accounts, so you can do a dry run on one before opting for a live account.
How much does volatily of the market impacts the slippage when you follow and copy the trades from other traders?
Ignored
Depends on sl's and tp's... Volatility is the distance price moves in a given time period compared to it's historical range of price movement, more movement in less time = high volatility and visa versa.
So the price you see will move often and move larger distances (and may gap) as volatility is high, the implication here is that you have a higher chance of getting slipped or a requote during these periods as your order tries to get matched/filled to prices that no longer exist.
If you're on a forum copying scalp trades with sl's and tp's in single digit pips, it will take maybe 5seconds to post the trade if he is fast, then a few seconds for you to be alerted of it and then another few seconds for you to enter the trade on your platform. In this time if volatility is high, price will have moved on from the entry point close to either sl or tp eg; enter ant price x sl 5pips tp10pips, lose 3 pips in the time it takes to enter trade on your side, the trade is no very attractive anymore.
If you're copying trades that have larger sl and tp, then the time it takes to post, be alerted, and make the trade on your end will most likely not see enough movement in price to warrant the trade be skipped eg; some entry at price x sl 20pips and tp 30pips, lose 3pips in the time it takes to enter on your side, you still have a viable trade.
I hope it works on my fixed spread broker. It works 
