The degree of price fluctuation in a market or asset over a given period of time. Higher volatility means price swings are larger or more frequent. In forex, volatility can be measured by indicators like Average True Range (ATR) or by observing the size of candlesticks. Major news events (like central bank decisions) tend to increase volatility. Traders and robots may thrive in either high volatility (more opportunity for profit, but higher risk) or low volatility environments (more stable trends or ranges), depending on their strategy.

Back to Robots Glossary Index