Tuesday, April 10, 2007
Trading with EUR, GBP
Trading with EUR, GBP - The popular currency pairs
Ever thought which are the most popular currency pairs to trade? Yes, EUR/USD is the popular of all and generally has tightest of spreads which is 2-3 pips depending on the broker.
The next is GBP/USD - the highly volatile and has spread of 4-5 pips.
What follows is USD/CHF and USD/JPY. Generally have 4-5 pips spread.
Remember the high the volatile the currency pairr is, the more it will honour technical analysis and corresponding indicators such as EMA, fibonacci levels, MACD, RSI etc. etc.
The exception being USD/CAD and USD/JPY which I have noticed is highly fundamental announcements and news impacted. Such as Oil price drives USD/CAD very heavily.
Also, the high the volatility, the more popular the pair is and the more ebooks are written for that currency pair. For e.g. ones written by Avi Frister or by Marc Mcrae. Not only that, people develop separate strategy for day trading that forex pair and some develop swing trading strategies as well.
I have not heard any one developing startegy for EUR/GBP since it is not that volatile.
Thats all in this session.Visit again to learn more on the exciting market of currency trading.
Ever thought which are the most popular currency pairs to trade? Yes, EUR/USD is the popular of all and generally has tightest of spreads which is 2-3 pips depending on the broker.
The next is GBP/USD - the highly volatile and has spread of 4-5 pips.
What follows is USD/CHF and USD/JPY. Generally have 4-5 pips spread.
Remember the high the volatile the currency pairr is, the more it will honour technical analysis and corresponding indicators such as EMA, fibonacci levels, MACD, RSI etc. etc.
The exception being USD/CAD and USD/JPY which I have noticed is highly fundamental announcements and news impacted. Such as Oil price drives USD/CAD very heavily.
Also, the high the volatility, the more popular the pair is and the more ebooks are written for that currency pair. For e.g. ones written by Avi Frister or by Marc Mcrae. Not only that, people develop separate strategy for day trading that forex pair and some develop swing trading strategies as well.
I have not heard any one developing startegy for EUR/GBP since it is not that volatile.
Thats all in this session.Visit again to learn more on the exciting market of currency trading.
Labels: EMA, fibonacci levels, forex day trading, forex pips, forex technical indicators, fundamental announcement, fundamental news, spread, technical analysis, volatility
Saturday, March 10, 2007
Forex Day Trading System: the volatility when news break out
Forex Day Trading System: the volatility when news break out
People many times ask me why does the volitility increase significantly when a fundamental news announcement such as FOCM or NFP comes out?
It may seem to be simple question for some of you, but I must tell you that it is very important for those who don't know.
Volatility is driven by the number of people in the forex market to buy or sell a currency pair in day trading. So, when the news breakout, the banks or the traders realize what is the true value of the currency. So, lets say if US fed release a fundamental announcement that is favourable for USD, it would mean that people need to buy dollar and close all the positions which are not in short in dollar.
This will increase the volatility tremendously and the candlestick bars will get bigger and all the traders who do technical trading will jump in..In other words, the online forex trading market will become active..
Thants all in today's post..Like I said in many previous posts, Keep visiting to learn more in the day trading of the currency market..You can add this page to your favourites or can add subscribe to the RSS feed by adding the chicklets on your yahoo/google or technorati page..
People many times ask me why does the volitility increase significantly when a fundamental news announcement such as FOCM or NFP comes out?
It may seem to be simple question for some of you, but I must tell you that it is very important for those who don't know.
Volatility is driven by the number of people in the forex market to buy or sell a currency pair in day trading. So, when the news breakout, the banks or the traders realize what is the true value of the currency. So, lets say if US fed release a fundamental announcement that is favourable for USD, it would mean that people need to buy dollar and close all the positions which are not in short in dollar.
This will increase the volatility tremendously and the candlestick bars will get bigger and all the traders who do technical trading will jump in..In other words, the online forex trading market will become active..
Thants all in today's post..Like I said in many previous posts, Keep visiting to learn more in the day trading of the currency market..You can add this page to your favourites or can add subscribe to the RSS feed by adding the chicklets on your yahoo/google or technorati page..
Labels: Forex day trading system, forex technical indicators, fundamental announcement, fundamental news, nfp, non farm payroll, volatility
