The Day Volatility tool

This tool indicates for any instrument which days of the week are the most volatile. The most volatile days of the week are the most interesting for traders. The tool can be used for market indices, forex pairs, commodities and even individual stocks.

These are the advantages of the day volatility tool:

  • The best days to trade are instantly visible.
  • The size of the volatility is indicated in %.
  • It can be applied to every instrument.
  • Easy to understand and easy to use.
  • It is FREE.

The five colour-coded bars correspond to the weekdays. Each bar is a full trading day. Monday is on the left, Tuesday is second, etcetera.

This example the DAX index. The most volatile day is Monday, closely followed by Tuesday, Thursday and Friday. The average volatility on a Monday is 3,1%. It means the DAX moves on average 310 points (if the DAX is at 10.000) every Monday.

DAX index volatility.

This example shows Apple. Friday is the most volatile trading day. The average volatility of Apple on a Friday is currently 3,4%.

Volatility Apple stock.

The average volatility is calculated over 35 weeks. The user can change this setting. Make sure you load sufficient data.

Practical implementation

Open the chart of the instrument you wish to trade. In the WHS Proposals folder, select the study Day Volatility.