[I]“As a newbie I was trading EUR/USD but eventually I realized it was too range-bound for my taste”
“each pair does have it’s own characteristics… in some instances it’s not at all a bad decision to get to know a single currency pair in great detail”[/I]
Does this mean that some pairs are better for intraday and other pairs are better for breakout/swing trading?
Seems to me that a pair that trades in a predictable range would be ripe for day trading, allowing you to snag five pips here, five pips there all day long. Where as a pair with big swings would be awesome if you are at all skilled at calling tops & bottoms.
But don’t listen to me, I’m brand new and know next to nothing.
Generally, yes, some pairs seem better to use for intraday trading, others are better for longer term trading. However, it’s all very relative. Even pairs that move smoothly in a single direction for a long time have their pretty significant periods of range-bound development.
To trade currency pair, we have to concentrate on different sessions. There is more liquidity can be seen in Newyork and London session overlap. Huge transactions occur in this session. So there is a movement we can expect in Forex market. We can concentrate on EUR/USD, GBP/USD, EURGBP, USD/CAD pairs. After the overlap, there is side-ways movement in the market.
In Tokyo session, the market movement is moderate. The movement will be high in JPY pairs after news releases. Then you can trade with JPY pairs on that time. We can expect some more liquidity in Tokyo and London overlap session. Europe market begins at that time. Largest number of transactions occurs in London session.
Please don’t try to trade with a best entry point, but make a suitable trading strategy for you! Like, my trading strategy offers me 30-40 pips trading opportunity in a long swing trend (like 200-250 pips)! In addition, of course I am happy on my personal trading system! Actually, I know my lacking and strength as well, so I don’t expect more!
It’s most important that there be a trend on the pair, because there’s no use of trading on a pair which is in the flat, or which is out of order, in other words is chaoticly moving up and down.