Volatility
Updated 2026-09-20
Definition
The size and speed of price swings over a period.
Why it matters
It isn't constant: it concentrates at session opens and around announcements. It is measured with the ATR or Bollinger Bands and decides sensible stop distance and position size.
Practical example
An ATR of 10 pips on EUR/USD H1 means average moves of about 10 pips per candle.
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Educational content, not financial advice. Trading involves risk.