I don’t agree with rule number 7. I’m a swing trader and trade more than 20 pairs, it’s easy because I look at the charts only a few times per day if my strategy is giving a signal. And cross-pairs know to offer amazing opportunities the majors won’t. Look at GBP/NZD, GBP/CHF or EUR/NZD. If you can catch the right moment to go with the trend, trading those pairs can be very profitable.
I’d second that - I love trading the cross pairs, and as a largely technical, trend-based trader, I feel I can apply the same basic strategy to a large number of pairs. I agree with FXTrader50’s list, but would add CAD/CHF, CHF/JPY, EUR/CAD and EUR/AUD as pairs that I find throw up consistent setups. Perhaps number 7 was aimed principally at newer traders, but I would caution against presenting advice as ‘one size fits all’ when actually some advice fits some strategies and not others.
CAD/CHF has spent much of the year trending nicely, but also tends to respect clear S&R levels. CHF/JPY has been trending beautifully on the Daily for many months, but also gives nice interim trends in both directions on the Hourly while also respecting horizontal levels. EUR/CAD also tends to trend nicely, respect horizonal levels, and when it ranges these ranges tend to be more predictable than many. EUR/AUD tends to respect a horizontal level, then make a strong move either through or in retracement, so can deliver quick pips within a decent overall trend. I am predominantly a trend or Price Action trader, supported by emas and Fib - these pairs interact nicely with those tools, in my experience.
But it really depends on individual strategies, these just suit mine. Alongside the Majors, Minors etc. I was really just seeking to make the point that there is no need to limit trading to just a couple of Pairs, as long as there is a reason for looking at more than that. As I look for behaviour and pattern, and don’t trade fundamentals, I find good pips on a number of Pairs. So I did not want new traders reading OP’s post and thinking that they needed to pick a Pair or two and limit themselves to those - some traders want to specialze on just one, or a handful, others trade a range of currencies. If they are both making consistent pips, then they are both right.
Thank you for your reply.
I understand what you’re saying about strategies suiting individual tastes, but for the purposes of clarity could you perhaps provide an actual chart example or two of a typical setup showing how you pull all this information together when placing a trade?
For instance, how do you interpret the price action, where would you plot the fibs from & how do the ems’s help to arrive at a decision to trade one of the pairs you mentioned?
I really posted on this thread to avoid the OP misleading newbies, rather than seeking to make it an exploration of the ins and outs of my strategy, but in outline I use ema as a form of loose trendline, they give a good indication of trend, and do serve as resistance zones for many currency pairs - Price often trends in cycles, with each cycle bouncing off an ema. I have the 200, 100 and 50 on my charts. I plot a Fib line between the high and low of a move, the Fib levels within this are often also respected.
Price Action interpretation is covered in a lot of detail in other threads, but basically a high test or low test are a decent indication that Price intends to reject a given level.
I am basically a with-trend Support & Resistance trader, so each of the things I mentioned just gives me a better opportunity to read where the S&R levels are likely to be. So when they all come together, I will look to enter a trade.
I am afraid that I have never figured out how to upload charts onto this site, have never done it. And not sure that this thread is really the place for that level of detail, anyway, it was a pretty flippant thread as it started out!
Sorry if I offended you. You made mention of your setups & I thought it might be helpful to get a better idea of what you were referring to by perhaps viewing a couple of charts, that’s all.
Thank you for going into further detail anyway. I won’t trouble you again.
Not offended, just was distracted by other stuff here and didn’t think that this thread was really something where we all wanted to get so down into the detail.
Recent example of a trade I took: 24th May, Daily chart, USD/CHF - sustained downtrend, end of day trade off the high test into Resistance at around 0.8895. This was a previous Support level, now acting as Resistance, Price Action was with me (high test), also rejection of a big number (0.9000), Fib level (38.2) and the 50ema (near enough). Those four factors, within a downtrend, I would short that every day of the week. TP was previous Support at around 0.8558, as you will see from the chart Price actually moved nicely through that level. From memory, that was about a 3:1 trade, not using a very aggressive Entry.
Apologies for the lack of chart - IT is not my strong suit!
I realize that this is not one of the pairs I mentioned in this thread, but this is a good example of the style of trade I was describing. Picked this pair purely as I have that chart open on my screen right now. The pairs I mentioned all suit this approach, as do several others. The only point I was making originally was that focussing on just one or two pairs is not always important for all trading styles.
I plotted the details within your post on my chart & now get a clearer idea of what you’re talking about.
I appreciate you taking the time to submit the information.
you know what i mean?