Forex pairs, which to trade?

[fxnewbie]

Are there any particular currency pairs that are better for beginners than others? Ideally I'd like to learn on a pair that doesn't swing wildly, yet at the same time trends in a way that makes scalping or day trading viable. -Thanks.

[Alb]

As a beginner, you should trade the pairs that are most active during your trading session. So if you are trading the Asian session, focus on JPY crosses. If you trade the European forex session, trade the EUR crosses.

What pairs have you tried? Have you had any successes with any of them?

[ownshook]

You may want to stay far away from volatile pairs as a beginner. They can eat up your account pretty quick.
Aud/Usd
Eur/Usd
are good bets. Bring them up in your charts and notice how smooth they generally trend.

[DanFXM]

Hello,

Does anyone have any advice on how to scan for pairs that with the best probability setups (i.e. best trending pairs)?

Regards

[toyogo00]

Hi,

To select which pair to trade, we look for few factors:

a. volatility : This is a measure of an average high/low daily range. GBPUSD is more volatile than EURUSD. I used to trade GBPUSD with max of 150pips stop loss (SL), with EURUSD my max SL is 100pips. If Fib study shows I need more than 100pips, I would forgo the trade. As Neal suggested, SL should be based on Fib level. Generally, USDJPY, EURUSD, AUDUSD, USDCAD, USDCHF are not so volatile (I trade them especially EUR and JPY). GBPUSD, GBPJPY and EURJPY are much more volatile.

b. spread : EURUSD and JPYUSD offer 1-3pips with ave of 2pips. GBPUSD is 3-5pips and cross pairs are even larger; 5-15pips. The spread is largely depend on the broker. I'm using IB where EURUSD may have only 0.5pip spread.

Thus for beginer, EURUSD and USDJPY are generally recommended.


DanFXM, to scan for pairs that with the best probability setups, there are many commerially available software to do so. However, any trading method is largely depend on individual personality. I personally prefer Neal's method - based on Fibonnaci level, TRSI and multi-time frame. Neal offers trend analysis and recommends a high probable shorting/longing points (DailyForexCharts). You have to study his method and do your own trade.


Regards,
Toyogo

[DanFXM]

Thanks "toyogo00"

I like to use a "currency strenght" tool to have an idea of the best trending pairs it's kind of like a "currency index", when I see currencies gaining strength over other currencies I match it with the currencies loosing strength compared to others (see chart attached).

Sometimes I don't know wich pair to trade when I have oportunities in two or three pairs, I guess I'll use common sense (analysis) and your advice about volatility.

Best Regards

P.S. The tool messures the Daily-Weekly Strength

[FibMaster]

Euro Session
London session opens daily at 8:00 GMT also 3:00 EST and closes at 17:00 GMT and 12:00 EST. London is one of the largest shopping centers in the world and has a market share of 30% minimum.
Some of the most active pairs during this session include USD/CHF, USD/CAD and EUR/USD.

New York Session / American Session
This session opens daily at 13:00 GMT also 8:00 EST and closes at 22:00 GMT also 17:00 EST. The hot time in this session is usually when the euro traders are still active. Which is between 13:00 and 17:00 GMT also 8:00 EST and 12:00 EST. The most liquid pairs during this session would include USD/CHF, GBP/USD, USD/CAD and EUR/USD.

Asian Session
Tokyo starts off the morning @ 12:00 GMT also 19:00 EST and ends at 21:00 GMT also 04:00 EST Usually currency pairs with the GBP are the most active during this time. EG: GBP/JPY, GBP/CHF. The rates of USD/JPY, AUD/USD, NZD/USD pairs and there crosses are also quite lively during this session.

[christian e]

Hi D

please how do i get this your fores pairs strenght scan.

Thank you

chris

[Graham_S]

Toyo,

>I'm using IB where EURUSD may have only 0.5pip spread.

I was looking at IB a couple of weeks ago. Is it correct that while their spreads are tight you also pay a small commission of a couple of dollars per trade or lot per trade on forex? I was getting a bit confused.
The reason for looking at IB is to get more than just forex into Ensign - I feel naked without the major indices, a bit of gold and oil:-)

Cheers.

Graham.

[DanFXM]

Hi D

please how do i get this your fores pairs strenght scan.

Thank you

chris

It's an RSI indicator in a colored bar, find it attached.

Blessings

[toyogo00]

Hi Graham,

Yes, they also charge commission - about USD2.50 per std lot per leg.

Regards,
Toyogo

[christian e]

hi

i have being trying to configure this your rader screen but have not being able,please tell me which programme to use.

Thank you

[peter.dfx]

Are there any particular currency pairs that are better for beginners than others? Ideally I'd like to learn on a pair that doesn't swing wildly, yet at the same time trends in a way that makes scalping or day trading viable. -Thanks.

I think so EUR/USD is the best pair. i can not say any thing about swings, but many opportunities for making money occurs in this pair.