Hello, friends! I thought and thought to write such an interesting, what many do not realize, and found such a topic! (Who seeks will always find) Each currency pair is "their" laws, especially. They are not always immediately apparent, so I decided to share those watching himself. A further matter of technique, as they say. System trader figure out a way to capitalize on any market inefficiency.
The idea of this post was born thanks to another, namely, the "Schedule of trading sessions forex, futures, stocks and useful patterns.", Which has published some interesting pieces. I did not mention it in vain, I want you to understand how to appear inefficiency of markets in which you can earn. Trading session will undoubtedly affect the actions of traders, which is reflected in the charts. This below, my friends!
The peculiarity of the currency pair EUR / GBP.
A very interesting tool! Euro and Pound, European currency, the economy is very dependent on each other, so many events are reflected equally in both currencies. That is negative for one, would be negative for the other. What it gives us? It is logical to assume that the trendiness (I wonder if there is even a word?) Of such a tool is not great. Not often that the euro is growing strongly, and the pound drops sharply at this time. Although, all things are possible. To test our hypothesis, let's look at the chart EUR / GBP.
how to choose a currency pair
The weekly timeframe, since 1998. As can be seen, prior to the 2008 crisis, this pair is developing flat. This is followed by a very large movement, which again gives way to flat. Let us compare the trend with the currency pair for the same period, EUR / USD.
characteristic of currency pairs
The picture is quite different, in the flat on the EUR / GBP, on EUR / USD trend is raging. Another remark, note the recent years and there and there is a correction, but the volatility of the EUR / USD significantly higher EUR / GBP. Our hypothesis was confirmed.
Now let's think about how to make money? Speculate good, but we need some results! But the point is that any countertrend method on the EUR / GBP, most likely, will work very well. It remains to find any system against the trend iprotestirovat it to historical data. How to find? Can you develop for yourself, or take from the internet. Food for thought given, but will have to work themselves.
The peculiarity of the currency pair EUR / USD.
This feature follows from the above described. If the EUR / GBP has low volatility and is inclined to the flat, then the EUR / USD tends to trend, what we have already seen, by comparing these tools. It is important to understand that within days the picture may be non-uniform (we shall see this).
EUR / USD is an ideal choice for use trending strategies. In addition, when trading costs are the smallest (how important it is to monitor this read the article, surprised: "How Forex Commission kills your score ?!"). How to capitalize on the trend, you again have to come up with themselves.
What unites the currency pair EUR / USD, EUR / GBP, GBP / USD and USD / CAD?
There are a couple of chips, first look at the first. All of these currency pairs are united by one thing: the main trading is in European and American trading sessions. In the Asian session, the activity is small, big moves happen, but not often. Why is this happening? Pound, the Euro, the US and the Canadian dollar is not actively traded, such as Japan and Australia, and the main news on the currency pairs that do not go out at this time. What it gives us?
Let's look at the graphs of these tools with the division of periods of days. Each day marked by the dotted line. Note that in most cases, since the end of the US prior to the European session, no sudden movements, that is, at night prevails flat.
EUR / USD
pair
GBP / USD
how to choose a currency pair
USD / CAD
Currency pair
EUR / GBP
characteristic of currency pairs
What gives us this practical side? And the fact that any method to run on the flat will give good results at night on these pairs. For example, you can try to open trade after hitting a maximum / minimum of the previous bar, hoping to roll back. If the flat is dominated, as in our case, the probability of the trend is low, and the probability of a rollback on the contrary increased. It remains only to test this approach and reflect on their own, but for you it nobody does. While certainly there are advisers who trade at night, most importantly, do not use Martingale chtobymetod.
Now consider a second chip trend. By the way, EUR / GBP is better to remove from the list, still little trendiness. What are the other currency pairs? Let Raskin brain (in a figurative sense, not to smudge around)! If the flat is mostly at night, when the same basic movements occur? Of course, in the afternoon. If we want to increase the effectiveness of the strategy of the trend, be sure to use it! Note that most activity happens during the overlap of European and American sessions. Let's look at the charts!
EUR / USD
Currency pair
GBP / USD
how to choose a currency pair
On USD / CAD movement, many just go around this time, as the US and Canadian trading sessions are the same. But you see for yourself.
Note that the sharp price spikes are not as common as the flat at night. But it does not stop the system traders! Knowing that at a certain time, a high probability of good movement, surely you will not be able to earn? Of course you can, I believe in you! Invent and test strategy with short stops and big profits were not working, there are so many.
The peculiarity of the currency pair EUR / GBP.
A very interesting tool! Euro and Pound, European currency, the economy is very dependent on each other, so many events are reflected equally in both currencies. That is negative for one, would be negative for the other. What it gives us? It is logical to assume that the trendiness (I wonder if there is even a word?) Of such a tool is not great. Not often that the euro is growing strongly, and the pound drops sharply at this time. Although, all things are possible. To test our hypothesis, let's look at the chart EUR / GBP.
how to choose a currency pair
The weekly timeframe, since 1998. As can be seen, prior to the 2008 crisis, this pair is developing flat. This is followed by a very large movement, which again gives way to flat. Let us compare the trend with the currency pair for the same period, EUR / USD.
characteristic of currency pairs
The picture is quite different, in the flat on the EUR / GBP, on EUR / USD trend is raging. Another remark, note the recent years and there and there is a correction, but the volatility of the EUR / USD significantly higher EUR / GBP. Our hypothesis was confirmed.
Now let's think about how to make money? Speculate good, but we need some results! But the point is that any countertrend method on the EUR / GBP, most likely, will work very well. It remains to find any system against the trend iprotestirovat it to historical data. How to find? Can you develop for yourself, or take from the internet. Food for thought given, but will have to work themselves.
The peculiarity of the currency pair EUR / USD.
This feature follows from the above described. If the EUR / GBP has low volatility and is inclined to the flat, then the EUR / USD tends to trend, what we have already seen, by comparing these tools. It is important to understand that within days the picture may be non-uniform (we shall see this).
EUR / USD is an ideal choice for use trending strategies. In addition, when trading costs are the smallest (how important it is to monitor this read the article, surprised: "How Forex Commission kills your score ?!"). How to capitalize on the trend, you again have to come up with themselves.
What unites the currency pair EUR / USD, EUR / GBP, GBP / USD and USD / CAD?
There are a couple of chips, first look at the first. All of these currency pairs are united by one thing: the main trading is in European and American trading sessions. In the Asian session, the activity is small, big moves happen, but not often. Why is this happening? Pound, the Euro, the US and the Canadian dollar is not actively traded, such as Japan and Australia, and the main news on the currency pairs that do not go out at this time. What it gives us?
Let's look at the graphs of these tools with the division of periods of days. Each day marked by the dotted line. Note that in most cases, since the end of the US prior to the European session, no sudden movements, that is, at night prevails flat.
EUR / USD
pair
GBP / USD
how to choose a currency pair
USD / CAD
Currency pair
EUR / GBP
characteristic of currency pairs
What gives us this practical side? And the fact that any method to run on the flat will give good results at night on these pairs. For example, you can try to open trade after hitting a maximum / minimum of the previous bar, hoping to roll back. If the flat is dominated, as in our case, the probability of the trend is low, and the probability of a rollback on the contrary increased. It remains only to test this approach and reflect on their own, but for you it nobody does. While certainly there are advisers who trade at night, most importantly, do not use Martingale chtobymetod.
Now consider a second chip trend. By the way, EUR / GBP is better to remove from the list, still little trendiness. What are the other currency pairs? Let Raskin brain (in a figurative sense, not to smudge around)! If the flat is mostly at night, when the same basic movements occur? Of course, in the afternoon. If we want to increase the effectiveness of the strategy of the trend, be sure to use it! Note that most activity happens during the overlap of European and American sessions. Let's look at the charts!
EUR / USD
Currency pair
GBP / USD
how to choose a currency pair
On USD / CAD movement, many just go around this time, as the US and Canadian trading sessions are the same. But you see for yourself.
Note that the sharp price spikes are not as common as the flat at night. But it does not stop the system traders! Knowing that at a certain time, a high probability of good movement, surely you will not be able to earn? Of course you can, I believe in you! Invent and test strategy with short stops and big profits were not working, there are so many.
