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3 ESSENTIAL FEATURES OF 'DAILY TRADING RANGE' NEGELECTED BY MOST TRADERS

3 ESSENTIAL FEATURES OF ‘DAILY TRADING RANGE' NEGELECTED BY MOST TRADERSWe will be discussing a very basic but highly useful resource in today's lesson which can provide valuable information to the trader..To get more news about WikiFX, you can visit wikifx official website.  Essentially, there are many ways in which you can use a pair's daily trading range information to help you do better trades. Currency graph is the major source of reference for traders in order for them to know or identify the markets conditions other than the economic news. Currency graph is divided into 2 main axes:  1) X axis: fixed data/information (time)  2) Y axis: fluctuate data/information (currency price)  These two combinations will produce a wave presenting the change in currency price is equivalent to the change of time. Currency volatility are usually move in an approximately similar range according to certain seasons.  This range equivalence graph movement can help us to estimate our potential trade profits or risks based on the entry point within that range movement.  The range for each currency pair is not identical. Some of the pairs can move less than 50 pips a day while some of them can move over 150 pips in a day.Daily Trading Range is defined as the average of graph volatility within a day starting from the market is open until it is closed.  It is measured from the lowest price to the highest within a day. The way to use DAILY TRADING RANGE is that you can use the TF Daily, click on candlestick one by one, plot it at the lowest price and project it to the highest price on the same candlestick. After that, you will find that the length of the daily candle is almost similar to the pair.If you gathered all the currency pairs and arrange it according to the DAILY TRADING RANGE as the diagram prepared by me, you will notice that the movement distance of each currency pair is different. The diagram shown is merely for illustration as the DAILY TRADING RANGE will change according to the seasons.  For your information, the DAILY TRADING RANGE will change over time. It usually changes once a month. So, if you want to get the DAILY TRADING RANGE for today, you only need to compare the DAILY TRADING RANGE within a month or 2 months.  Here, you can compare which of the pairs are move faster and which are move slower. If you are targeting for a low-risk trading, choose a pair which its DAILY TRADING RANGE is lower. For the new traders who are just getting started to trade, it is recommended for you to trade currency pair which its DAILY TRADING RANGE is lower to minimize the risk of loss.  However, if you are targeting for a high-risk trading with a rapid and huge profit potential, you may choose a currency pair which its TRADING RANGE is higher. Logically, higher trading risk is usually will produce higher profit potential.

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