Adapting Your Forex Strategy to the Current Volatility Regime Identifying the Current Volatility Regime Volatility is the engine that drives

Adapting Your Forex Strategy to the Current Volatility Regime Identifying the Current Volatility Regime Volatility is the engine that drives price movement. For a novice trader, the simplest way to quantify it is the Average True Range (ATR). ATR measures the average distance between a candle’s high and low (including gaps) over a set period, usually 14 days. To decide whether the market is calm or chaotic, compare today’s ATR to its own historical average. A common rule of thumb is: Low volatility: ATR is less than 0.5 × the 90‑day average. Prices tend to drift, creating choppy, range‑bound markets....