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[Click on the graph above for a larger version] One of your most important indicators for trading the Forex market is the clock. Knowing how to trade — using technical and fundamental analysis, managing risk, adopting a trader’s mindset — is critical, but your effectiveness as a trader is limited until you know when to trade. The above graph [click on the graph to view a larger version] is a visual answer to the question, “When does the EUR/USD tend to move?” The small black squares on the graph represent the average range (high minus low) for the 15-minute candle which opens at the time of day designated by the scale at the bottom of the graph. The gray bars, which stretch above and below the black squares, represent what statisticians refer to as the 95% confidence interval for the true mean of the range for candles at that time of day. For an example of how to interpret those gray bars, look to the one labeled “London Open.” The average range of the 15-minute candle which opens at 06:45 GMT, based on EUR/USD price data from June 15 through August 14, was about 21 pips. Recent data suggests the range of that candle is statistically different from the average range (17 pips) of the previous 15-minute candle, but not statistically different from the average range (20 pips) of the next 15-minute candle. In simpler terms, the EUR/USD has recently seen a significant surge in volatility between 06:00 to 07:15 GMT, as compared to the volatility during the five previous hours. Curt Wehrley FX Bootcamp’s Quantitative Analyst Related post: EUR/USD volatility by time of day