Volatility O-H-L-C – FX Replay Guide

The Volatility O-H-L-C concept in FX Replay focuses on analyzing the Open, High, Low, and Close of candles to assess real-time volatility dynamics. It’s an essential tool for understanding market energy, timing breakouts, and adjusting risk based on candle behavior during session replays.

How to Use It in FX Replay

Visual Volatility Analysis

• Large high–low range = Volatility spike.
• Long body (Open → Close) = Strong directional move.
• Narrow range / small body = Consolidation or indecision.

Use zoomed-in Replay Mode to study how volatility unfolds on a candle-by-candle basis.

Pair With Volatility Tools

• ATR: Gauge average movement over past X candles.
• Keltner Channels / Bollinger Bands: Define dynamic S/R during expansion.
• Volatility Stop: Helps place stop-losses based on trend & pullback behavior.

Trade Adjustments Based on Volatility

Stop-Loss Sizing:

• High Volatility → Use wider stops to survive wicks.
• Low Volatility → Use tighter stops to protect capital.

Entry Triggers:

• Watch for breakout after narrow range (low OHLC variance).
• Entry confirmation = candle with strong body and expanding range.

Exit Signals:

• Large OHLC bar + divergence = fade setup.
• Target reversals after exhaustion candles (big wicks + no follow-through).

Session-Based Volatility Tracking

Replay key sessions like London or New York and label:

• Large range + small close = Uncertainty (possible fakeout).
• Large body + wide range = Directional conviction.
• Backtest reaction in the next few candles for structure alignment.

Pro Tip

Use Volatility O-H-L-C analysis to:

• Tag fakeouts (large wick + small close).
• Identify optimal breakout windows (after contraction).
• Build your volatility journal inside FX Replay.

Example journal tags:

• “Wide Range Bar + VWAP Break”
• “Narrow Body + Expansion Candle”
• “NY Open Spike + Keltner Band Rejection”