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Trade
Use more predictable currency pairs
Some currency pairs tend to follow the trading patterns more obvious way than others. The "best" of these templates, one can easily see even the "naked eye", without lines on the chart. It is important to remember that when You are in search of good deals.
More predictable currency pairs are obvious lines of support and resistance will be observed more precisely and clearer. This means that when the pair approaches the line, its movement slows down. The couple feels the lack of momentum to break through let? If so, then this line will serve as a point of rebound, and the price will return to the middle of the range.
But when a couple is quite penetrative power in order to make a breakthrough, it will eventually penetrate the line and will be located in the new range, above or below the traveled line. The same applies to the trend channels to increase or decrease.
Less predictable couples live in the realm of chaos. Some of them are very volatile. Your trading system may be designed to range trading, but these pairs are constantly breaking your range is incorrect and unpredictable price surges.
Some currency pairs will work with Your trading system best way, and some, of course not. If couples that match Your system, no such system it is time to say "goodbye". But if the system will actually work with some couples, they are likely to be more predictable and better suitable not only for this but also for any trading system.
What pairs more predictable?
The General rule is that the currency pair with a large volume of trade tend to be more predictable. So, exotic currencies or crosses certainly not fit into this definition.
But it is not a strict and absolute rule, and it is currently not subject to the most popular couple in the world - the debt crisis in Europe makes EUR/USD pair is less predictable, despite the huge volume of trades.
Moreover, trading patterns are not eternal. Fundamental data have a big impact on the chart templates all the time and change them.
From time to time we publish on the website a list of the most predictable currency pairs for the quarter.
But this list is not necessarily the most appropriate for You. Use the following criteria as a General guide:
• Explore charts, analyzing everything that catches your eye. This was the first and most important rule.
• Next, choose those couples who really work well with Your system.
• And finally, do not forget again and again to test their "aptitude" for a long time.
As already mentioned, patterns change all the time. Reschedule the test of the currency pairs at least once a quarter, and it will help You avoid situations where You continually lose trades. Perhaps Your trading system is very good, but from time to time there comes a time to use it for another pair.
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| Category: Forex | Added by: (29.10.2017)
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| Views: 251
| Rating: 0.0/0 |
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