What currency pairs are your favorite when you trade Forex? I prefer EUR/USD and GBP/JPY. The first is very popular, and therefore fairly predictable, while GBP/JPY has a very high Intraday volatility, which allows you to earn many pips. What do you say?
You don't have to focus on a one single currency pair because you won't always have trading opportunities on it. Instead, you have to always monitor several currency pairs so you can trade the pair that represents the highest probality win according to your system. Let's say for example that :
- Your system consist in trading the 4 hours chart. - Once you have a candle pattern ( Example : Bearish engulfing candle ), The RSI should be overbought ( Above 80-90 ) - Once the conditions above are united, you need for example to have the price trading below the 100 MA on the 1 hour chart - You will be taking your signal from the stochastics cross on the 4 hours chart.
If you are focusing on eur/usd or any other pair, you won't have a lot of opportunities. On the other hand, if you are trading several currency pairs, you can search for the one that is uniting the most elements of your system and you can trade it normally.