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Best currency pair for trading
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maria_taylor

Mitglied seit Mar 12, 2018  39 Beiträge maria_taylor Jun 03 at 08:31
Which is the best currency pair for trading and in how many pairs you trade generally?

SwapTrader

Mitglied seit Dec 25, 2017  24 Beiträge SwapTrader Jun 03 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.

argreen

Mitglied seit Feb 13, 2013  48 Beiträge argreen Jun 03 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
SwapTrader

Mitglied seit Dec 25, 2017  24 Beiträge SwapTrader Jun 04 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!

maria_taylor

Mitglied seit Mar 12, 2018  39 Beiträge maria_taylor Jun 04 at 13:40
SwapTrader posted:
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.

Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?

SwapTrader

Mitglied seit Dec 25, 2017  24 Beiträge SwapTrader Jun 05 at 06:08
maria_taylor posted:
SwapTrader posted:
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.

Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?


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.

maria_taylor

Mitglied seit Mar 12, 2018  39 Beiträge maria_taylor Jun 06 at 06:26
maria_taylor posted:
SwapTrader posted:
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.

Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?

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.

TiffanyK

Mitglied seit Feb 12, 2016  415 Beiträge Tiffany (TiffanyK) Jun 06 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
bdelam

Mitglied seit May 18, 2018  25 Beiträge bdelam Jun 12 at 10:50
depends... mostly on trade news, foreign relationships (geopolitics?), BIG banks... but, the price is always right! :)

begin fm below. no man w/ 4 aces asks for a new deal.
chunu75

Mitglied seit Jun 01, 2018  1 Beiträge chunu75 Jun 12 at 12:15
Trading on on majors is always good because there is almost always around 100 pipes up and down.

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