Forex market volatility is the most important characteristic used for the development of short-term trading systems (forex scalping systems etc.). Volatility refers to the amount of uncertainty or risk about the size of changes in a currency's value. A higher volatility means that a currency's value can potentially be spread out over a larger range of values. This means that the price of the currency can change dramatically over a short time period in either direction. A lower volatility means that a currency's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.

Logically, any currency is typically most active when its own markets are open. For example, the euro’s, British pound’s and Swiss franc’s volatility is  higher when the European session is active. It happens because banks and traders from a specific country will use their domestic currency in the majority of their foreign exchange transactions.

Every currency has specific period(s) of time of high and low volatility therefore majority of scalping systems work during the period of low volatility. That’s way most scalping systems are   limited in time. For example our most popular forex scalping expert advisor stomper .  It’s trading hours are determined between sessions (For example after the closing American trading session) when the market is quiet.  But quiet market can happen at any time, as well as the possibility of intense price movement after the closing American trading  session.. That’s why it is very important to have a reliable of quite periods determination.

As the forex market volatility directly connected with the volumes metatrader has a “Volume” indicator method. It is a count of “ticks” received in a time period. This indicator is not very informative. We think that Volume Rate of Change is more useful as it demonstrates the speed at which volume is shifting.




This can turn out to be rather helpful as almost each essential chart formation, such as peaks, bottoms or breakouts, is followed by a sudden volume raise.

( Volume - Volume n periods ago ) / Volume n periods ago


Using this methodology for identifying the quiet areas of forex market has been testing and has been very successful. This was proved with expert advisor V-Trader which uses this methodology.
Expert advisor was tested on demo account and we have added expert advisor to real account. Expert shows good performances.



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The "V-Trader"expert advisor is a completely automated trading system; it is based on the channel strategy and the analysis of the market volatility. The expert advisor opens orders from the channel border (we do not use the channel of linear regression and high low levels) at the moment of low volatility and closes order at contact with the opposite border of the channel. The expert advisor does not trade when volatility is high. learn more...