There are various methods to filter out the most volatile currency pairs. Here is the simplest one I’m using:

1. Perform a search on the web to get tools to measure the strength of currency correlation. Like the followings:

2.  Suppose you are trading on the 5-minute time frame, pick the currency pairs with low readings on the 5-minute correlation table but with high readings on the longer time frame table, say hourly correlation table. In other words, pick the currency pairs whose 5-minute readings differ the most to the hourly readings and the 5-minute readings are less than the daily readings. My theory behind this is simple: the more correlated between the currency pair, the less volatile for the pair’s movement.

At the momentum of wring this post, the pairs I picked for 5-minute trading is EUR/GBP and EUR/CHF. Check out the chart snapshots belows.


3. Wait until there are available entry points and then pull the trigger.


    One Thought on “How to Find The Most Volatile Currency Pairs for Forex Trading

    1. Good post. I learn something new and challenging on sites I
      stumbleupon every day. It’s always interesting to read through content from other writers and practice a little something from their web sites.

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