The average tick movement for futures, currency futures and spot forex helps a trader anticipate “how much” the market they want to trade typically moves in a given day. A tick measurement is defined as one increment in price with the exception of the currency markets. One full increment in the currency markets is considered as one pip. The average tick movement can also be used to determine the volatility of these given markets (the higher the number of ticks, the higher the volatility is).
Determining this movement can also help traders determine the best timeframe to use intraday or day trading these instruments. For example, the Japanese Yen Currency Futures only moves approximately sixty-five pips so trading a three minute may be very noisy because it is not as volatile as the Euro Currency Futures which moves 139 pips.
Average Tick Movement for Futures
The average daily movement for Futures is shown below. The daily movement is calculated using a 254 average of the daily high minus the daily low. The market that moves the most is the e-mini Nasdaq, followed by the Dow and Crude Light.
Average Tick Movement for Currency Futures
The average daily movement for Currency Futures is shown below. The Currency Futures that move the most are the Euro, British Pound and Swiss Franc.
Average Tick Movement for Spot Forex
The average tick movement for Spot Forex market is shown below. The spot forex markets that moves the most are the GBPJPY, USDCAD, and EURUSD.
A new trader, using the numbers from the charts above, could also filter the markets they want to trade and stay away from the most volatile markets as they can quickly go against the trader. For example, instead of trying to trade the GBPJPY a new trader may want to opt for trading the AUDUSD, which tends to move less but tends to trend better from a higher timeframe.