ULTIMATESWINGTRADER.COM TRADING THE AUDUSD FOREX CURRENCY PAIR
Written by admin on November 19, 2009Outlined in a trading strategy at UltimateSwingTrader.com/blog we trade a AUDUSD currency span regulating a UST strategy.
forex currency pairs
Forex Trading involves shopping one currency in a currency pair, by offered a other. So if one is trading in EUR/USD, a trade might engage shopping EUR by offered USD at a stream market rate or vice-versa. Similarly shopping EUR in EUR/GBP would need GBP to be sold.
Unlike options or bonds which have lots of companies which can be traded on, a forex market has got singular currency combinations which can be used to place a trades.
Despite this, mostly people consternation which currency pairs should be selected for trading? Should it be USD formed or should it be a one which is heavily flighty or should it be a little other?
Lets demeanour at couple of parameters which can be used to confirm -
1. What is a pip spread concerned – The greatest factor to be deliberate is a spread in in between a currencies. In layman’s terms, Spread is a disproportion in in between a sell cost as well as a ask cost of forex currency pairs as since by a forex broker. In alternative words, it is a elect of a broker or representative by which a trades are made. The reduce a spread, a improved it is for a forex trader. The lowest spread we have seen is in EUR/USD, which has a normal spread is 2 pips to 3 pips. Typically a spread of upto 5-6 pips is great sufficient to trade.
2. What is a liquidity? – The some-more a liquidity, which equates to a aloft is a volume of money being traded on which currency pair. So, this in a future equates to which which sold currency span moves a lot in a a trading sessions. Its improved to trade on such from a day trading viewpoint as a trades do not need to be kept open for a longer time. we have seen which a GBP/USD is heavily liquidated. On normal it moves about 100-150 pips everyday. This is followed by EUR/USD as well as USD/CHF.
3. How does a currency span behaves? – Does it pierce technically or is it essentially elemental driven? The one which is essentially elemental driven doesn’t has many courtesy for technical analysis. we have seen JPY (Yen) as one such currency which is heavily elemental analysis driven.
So, these are a a little factors which can be used in identifying a currency pairs to be traded on. Though these factors are not an downright list, they can be used as minimum basic rules. The pip spread is one critical criteria. The lower, a improved it is. However a currency span should additionally be amply liquidated as this equates to which there will be poignant pips transformation during a trading day.
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Forex Pairs or Individual currency futures what is a good of pairs over particular currency?
Hi
I can't figure this one guys, what is tha good of regulating many forex brokers similar to FXCM for currency pairs profitable a 1-3% spread when we can trade any vital particular currency futures for $4.75round outing with a futures broker.
Am we blank a large good of trading forex pairs somewhere?
Thanks
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5 Comments to “ULTIMATESWINGTRADER.COM TRADING THE AUDUSD FOREX CURRENCY PAIR”
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November 19th, 2009 at 12:20 pm
This program is “Da Bomb”! The easiest way to profit in the rough & tumble Forex markets. But you want to know something? It works with stocks & futures! Thanks for posting.
November 19th, 2009 at 12:22 pm
Wow! painless~ unless your watching it….My advice: Don’t watch….have a beer. Get some sleep…..and BANK IT!
Nice program. Kudos~!
November 19th, 2009 at 11:53 am
Hi David,
It's a good question you're asking. Some forex brokers try to make it out like spots are far superior to futures, but the difference isn't that big. Other brokers offer both (see some at http://forextradingwinners.com/category/forex-broker-reviews).
Spots are generally cheaper to trade as there is mostly no commission. Spots are not regulated by the FTC either. Spots as you know are settled instantly as opposed to futures. This CAN be cheaper as well.
Spots are more flexible and come in different lot sizes. Futures are often only standard lots of 100,000.
Futures are more transparent and have more info available freely.
November 19th, 2009 at 12:52 pm
Hi Patrick,
I haven't seen a solution to capturing and recording actual prices for the past X time periods. You can dowload the data from piptrader.com.
A better solution might be to have a programmer crank out an EA for you that would do that for you. (I am surprised that the solution that you are using didn't think of that as part of their application rather than request you to enter 10 sets of data into a calculator).
I pretty much accomplish the same thing by simply monitoring a couple of moving averages and watching for them to to cross and both maintain a steep angle. This indicates the possible beginning of a reversal.
I would be happy to send you a summary of the moving averages that I use and how I use them. It might be interesting to compare this to the signal that you are getting from your K-F calculator……and it is free.
Paul
November 20th, 2009 at 3:19 am
Hi
The USA and European markets overlap between 5am & 9am Eastern Time and the Euro & Asian between 11pm & 1am eastern. It is usually the busiest time and best to trade.
This is great time to trade Forex market when the over lapping periods