Best currency pair for trading
Mitglied seit Mar 12, 2018
40 Posts
Jun 03, 2018 at 08:31
Which is the best currency pair for trading and in how many pairs you trade generally?
Mitglied seit Dec 25, 2017
24 Posts
Jun 03, 2018 at 10:05
The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.
Jun 03, 2018 at 18:51
It's not that simple. Strong currency has to be supported by longer term fundamentals. Most of the time when you see the strongest currency which is driven by sentiment it is already too late to buy it. In that case you should look for s/r levels to fade it instead. There was broker survey carried out with a question; What is the most common trait of the traders? Most of the brokers responded - overreaction. This is a result of fear and greed. Therefore fading the spikes is the most popular short term strategy by the hedge funds.
What goes up, must go down
Mitglied seit Dec 25, 2017
24 Posts
Jun 04, 2018 at 06:02
argreen posted:
It's not that simple. Strong currency has to be supported by longer term fundamentals. Most of the time when you see the strongest currency which is driven by sentiment it is already too late to buy it. In that case you should look for s/r levels to fade it instead. There was broker survey carried out with a question; What is the most common trait of the traders? Most of the brokers responded - overreaction. This is a result of fear and greed. Therefore fading the spikes is the most popular short term strategy by the hedge funds.
Yes...it really is that simple. Strong currencies are, by their very nature, supported by the fundamentals. That's why they are strong!
Mitglied seit Mar 12, 2018
40 Posts
Jun 04, 2018 at 13:40
SwapTrader posted:Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?
The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.
Mitglied seit Dec 25, 2017
24 Posts
Jun 05, 2018 at 06:08
maria_taylor posted:SwapTrader posted:Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?
The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.
If AUD is strong, and USD is weak, I buy the AUDUSD. If JPY is strong, and GBP is weak, I sell the GBPJPY. If CAD is strong, and EUR is weak, I buy the EURCAD. Currency strength-weakness determine the pair I will trade at a given point in time. Using the eight major currencies, and matching them on this basis, there are 28 currency pair combinations. My favourite currency pair is the one that currently represents the greatest divergence between strength on one side and weakness on the other. Let this be your guide to pair selection.
Mitglied seit Mar 12, 2018
40 Posts
Jun 06, 2018 at 06:26
maria_taylor posted:That’s a nice way to choose currency pairs for trading. I also prefer major pairs to trade with, especially EUR/USD, GBP/USD, and USD/CAD. As these pairs are highly liquid and have low spreads also. Now I am planning to trade with EURO/GBP and AUD/CAD also.SwapTrader posted:Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?
The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.
Jun 06, 2018 at 14:17
I am most of the time also on EUR/USD , as maria-taylor says, that's the most tradable and liquid pair with low spreads... and I think as well traders with rather low experience tend to be on this pair...
Accept the loss as experience
forex_trader_458816
Mitglied seit Sep 11, 2017
124 Posts
Jun 13, 2018 at 06:24
I love EURJPY 😁
When the pair trending, most martingale system sure will be wiped out 😂
When the pair trending, most martingale system sure will be wiped out 😂
Mitglied seit May 30, 2018
20 Posts
Jul 01, 2018 at 06:54
TiffanyK posted:. I’d also say EUR/USD, it has very good liquidity, tight spreads, high trading volumes, especially for novices.
I am most of the time also on EUR/USD , as maria-taylor says, that's the most tradable and liquid pair with low spreads... and I think as well traders with rather low experience tend to be on this pair...
forex_trader_535230
Mitglied seit Jun 29, 2018
27 Posts
Jul 02, 2018 at 12:47
sarahlawrence posted:TiffanyK posted:. I’d also say EUR/USD, it has very good liquidity, tight spreads, high trading volumes, especially for novices.
I am most of the time also on EUR/USD , as maria-taylor says, that's the most tradable and liquid pair with low spreads... and I think as well traders with rather low experience tend to be on this pair...
But EUR/USD also tend to make violent moves that can scare off newer traders or traders who are less calm. Just my thoughts. I am sure traders who track EUR/USD or trade it often enough have seen/experienced it move big both ways within the day.
forex_trader_431941
Mitglied seit May 23, 2017
8 Posts
Jul 04, 2018 at 06:46
I've never found a good pair, but instead a good correlation 'set'.
Mitglied seit Mar 26, 2018
31 Posts
Sep 04, 2018 at 07:43
maria_taylor posted:
Which is the best currency pair for trading and in how many pairs you trade generally?
I have good experience in trading and I think, EUR/USD is the best currency pair for trading
Mitglied seit Sep 12, 2018
9 Posts
Sep 12, 2018 at 11:35
EURUSD is a fairly solid pair. The moves aren't that big recently. I have moved more of my trading to EURJPY, it trades in a similar way to EURUSD but ATR is over 100 pips now
