Now, one might actually think that ranging market is great! Well, there are different kind of traders, strategies, indicators or robots that are set to work optimally in such market conditions when the volume is low. Meet the scalpers. Best time to trade for scalper traders is on short timeframes like M1 or M5 in order to capture currency pair movements that form within mere seconds to few minutes maximum.

They have many trades in a day. High volatility is not good for them, here is why: as currency pairs move up and down much more during their respective trading sessions, their trading setup cannot get a valid signal. There is too much noise for their strategies on M1 and M5 timeframes and their set stop loss level gets triggered too often. Scalpers trade between trading sessions and the best time for them generally is when all Forex currency pairs show low volatility, such as during the summer of It is best to avoid trading currencies, equities or anything if you do not have the right mindset.

Once emotions start messing with your decisions, it will show on your account balance. Every trader will feel the toll of Forex, your mood will swing in the same way as your profits and losses. Determination and confidence will be put to test as never before. Here is what you can do. Train yourself to stick to the plan, once the decision is made do not change it. Let that stop loss you have set according to your strategy be triggered if it has to. Train your discipline, if you have found the best currency pairs to trade with your plan, then always be ready to apply that plan.

This strategy that you made is your Forex bible that will help you clear emotional swings. Now, every good trader must have a plan. Once you have determined what type of trader you want to be, the next big thing to do is to make a trading strategy. Further reading: 5 Most Predictable Currency Pairs — Q3 Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated.

After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Yohay's Google Profile. Since the outbreak of the financial crisis,…. Home » Range Trading: Which Pairs Work Best? Yohay Elam Updated: 10 July Do you trade ranges? Spread First, let's talk about the spread. If you trade major currency pairs or the crosses, the spread is generally reasonable. So the spread shouldn't be your main concern. Liquidity The Forex market is the most liquid markets in the world. Because the market is very liquid!

Whatever order that you put into the markets is probably not going to make a difference at all. Imagine this: You take a pail to scoop up water from the sea and pour the water onto the land. Is it going to make much of a difference to the sea? No, not really. Because it's only a small pail! And it's the same for liquidity. That's what I'll get to right now. Understanding the market behaviour To decide the best Forex pairs to trade, you need to pay attention to the market behaviour.

That's right. Because if the market tends to mean revert, then breakout tends to fail. Because the market tends to trend. So now the question is… How do I know whether the market is trending or mean reverting over time? I want to share with you this technique that I've learned from Andrea Unger. You can do this via backtests.

And the answer is as simple as can be, the safest currency pairs are the most stable ones. Read on to learn which currency pairs are the best to start your trading journey. In the FX world, all currency pairs are conventionally divided into three groups: exotics, minors, and majors. Such classification is based on the criteria of trading volume, liquidity, and volatility. Exotics e. They are prone to extremely high volatility, meaning their quotes change drastically, sometimes in a matter of seconds.

The number of market participants trading exotics is relatively small, which means their trading volume is low. Read more: Why Trading Low-Volume Currency Pairs Can be Risky. Minors e. And lastly, major currency pairs are the ones most heavily traded in the market. Due to their high liquidity, major currency pairs are often accompanied by better trading conditions, including tighter spreads. Saying a "stable currency pair," we mean one that doesn't tend to sharp price fluctuations throughout a short time period.

Given the classification above, the most liquid, and thus the least susceptible to large price swings, pairs are majors. The liquidity of these pairs is justified by high trading volume, especially supported by institutional trading.

The high liquidity of a currency pair guarantees that you will not find yourself holding an asset you cannot sell when needed, simply because there is no one to buy it at the current price. Read more: How to Read Forex Currency Pairs.

This pair can boast high liquidity as it consists of the currencies of the two powerful markets. The best time to trade the pair is the overlap of the European and American trading sessions. The British pound also has a positive correlation with certain commodities, such as base metals and Brent crude oil.

You can find the detailed schedule of trading sessions here. Hence, traders of this pair should closely monitor OPEC meetings. Understandably, the most active trading time for the pair is the operating hours of the North American trading session. Trading the pair may be advantageous during the North American or Pacific trading sessions when there is important news in Australia. China's economy is strong, which makes its currency a stable one. Moderate volatility of the pair allows traders to profit from daily fluctuations without the risk of too abrupt price changes.

Interest rates, GDP, and employment data of Switzerland and the US are the most important indicators that predetermine the quotes. The overlap of the European and the North American trading session is probably the best time for trading the pair.

Read more: Forex Trading for Beginners in It is highly influenced by events taking place in Japan and the UK. The pair can develop strong trends allowing traders to gain many pips on a single position. A short period of overlap between the Asian and the European sessions can be great for trading this instrument. The most important data to monitor when trading the pair are interest rate changes of the Reserve Bank of New Zealand and the Fed.

Read more: What are the Best Forex Currency Pairs to Trade. It is true that a certain degree of volatility is required in order to profit in the forex market.

However, too much of it may be risky. This group of currencies is highly liquid and, as a result, unlikely to experience significant unexpected price moves. By having a trading account on JustMarkets, you benefit from advantageous conditions, including high leverage, low spreads from 0.

And if you have any questions, there is a helpful support team working round the clock to ensure you have the most convenient trading experience. Try your hand at currency trading by opening a demo account on JustMarkets. A practice account will help you learn trading basics and develop a strategy before investing money. Start trading today to take care of your future tomorrow. Beginner traders are recommended to trade major currency pairs and avoid trading exotics.

The strength of the currency is attributed to the fact that Kuwait is a major exporter of oil to the global market.

It is best to start learning by trading a single currency pair. It is also advisable to trade a major currency pair, e. by JustMarkets , Please enable JavaScript in your browser. Get free daily updates on four major currency pairs, stock indices, and commodities. What are the Most Stable Currency Pairs? What is the Safest Currency Pair to Trade? What is the World's Strongest Currency? How Many Currency Pairs Should I Trade? Open Real account Open Demo account Download MT5 platform Download MT4 platform.

Last Articles. Best Forex learning platforms. When you have some savings, it is useful to find an effective way to increase them.

How to choose your trading style? What are the trading styles? In order to answer this question, it should be noted that there are active trading and passive investing. Netting and hedging? What is the difference? The vast majority of traders, not only beginners but also more experienced ones, do not know the difference between these order execution systems. How to Buy and Sell Cryptocurrency. Forex Trading for Beginners in How to become a forex trader.

Do you trade ranges? The overlap of the European and the North American trading session is probably the best time for trading the pair. Oil prices influence the Canadian dollar, so it's worth checking the charts for oil to see if the prices are bearish or bullish. The value of the AUD is closely associated with CAD thanks to the interdependent relationship that the economies of Australia and Canada share. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. And if you have any questions, there is a helpful support team working round the clock to ensure you have the most convenient trading experience.

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