WebStruggling to choose the best forex pair to swing trade? The best currency pairs for swing trades are EUR/NZD, EUR/AUD, EUR/CAD, GBP/AUD, GBP/CAD, and GBP/JPY. The WebFrom the preceding, the following below are the best forex pairs for swing trading. AUDJPY. The Australian dollar (AUD) has an exciting relationship with the Japanese yen (JPY). WebThe best forex pairs to swing trade are those pairs that frequently trend, for instance, EURUSD, GBPUSD, EURJPY and USDCAD. Any pair that is influenced heavily by WebIn the case of NZD/USD, that market is dairy. New Zealand is a top five global exporter of dairy, and the combination of this market influence with the high liquidity and volatility of WebSir,Do you recommend triangular forex trading eg– gbp/jpy gbp/usd, usd/jpy–sell overbought pair and buy oversold pair ONE BY ONE say based on 15 minute chart using ... read more
The trading style falls anywhere from holding a position for a day-and-a-half and several months. Most importantly, it would be best to catch a swing when it happens, and the earlier you do it, the better. The most exciting part of forex is that you can trade both sides of the market. In the same breadth, price action swings can happen when the market is trending upwards or in a downward descent. Swing high and swing low are critical concepts for successful swing trading.
Although different traders have different definitions, below is the market consensus on the definition of swing. A swing high refers to the peak that price action reaches before commencing a decline. This phenomenon forms when the market is trending up. To spot a swing high on a candlestick price chart, look for the highest candle just before a correction. On the other hand, swing lows form in a down-trending market. Usually, it is the lowest price point on a chart immediately before an upward correction.
Swing highs and lows are critical concepts when identifying the right swing trading strategy. They indicate when to enter or exit the market and when to execute. Typically, swing highs and lows form in a ranging market.
So far, it is apparent that swing traders thrive in a market with sufficient volatility to generate sharp shifts in price action. By extension, the best currency pairs for this trading style must fulfill the two necessary conditions below. Volatility in forex refers to the price gyrations of currency pairs. Typically, a volatile pair records a substantial difference between the opening and closing prices, often more than 50 pips.
Usually, pairs involving safe-haven currencies like the US dollar exhibit more stability hence lacking requisite volatility. Contrarily, emerging market currencies tend to fluctuate a lot, meaning the associated pairs are often volatile.
Liquidity is essential for two primary reasons: Traders need to lock in profits, meaning they need their sell orders fulfilled in good time.
Secondly, they need to limit losses. It means being able to rely on the stop-loss order to execute at the required price point. From the preceding, the following below are the best forex pairs for swing trading. The Australian dollar AUD has an exciting relationship with the Japanese yen JPY.
A multi-timeframe analysis method usually incorporates a top-down analysis methodology. So the clarify further, a swing trader who utilizes the daily chart as their primary trading timeframe to scan for their trade setups, should confirm that the next larger timeframe chart, in this case, the weekly chart, is in alignment with their trade set up.
After which, it is recommended that the trader zoom into the next lower timeframe from your trading timeframe, which in this case would be a four hour chart, to fine-tune the trade entry. The main take away here regarding multi-timeframe analysis is, regardless of the specific trading timeframe that you utilize for finding your trade setups, you should always confirm the bigger picture by going to the next higher timeframe. In addition, you should refer to the next lower timeframe from your trading timeframe to pinpoint the best entry point.
Here are some combinations of swing trading time frames, and the associated higher timeframe for trend analysis, and lower timeframe for fine-tuning entries. Depending on your specific swing trading methodology, you may need to revise this a bit. But generally speaking, the above outlined swing trading time frames are the ones that you will likely focus on for the most part. They are the most widely watched among swing traders, and thus offer the best clues as to what other traders are thinking and positioning themselves.
Personally, the best forex swing trading signals that I see come from the daily chart. As swing traders, we want to trade those instruments that have a high level of trading activity in terms of volume and thus offer great liquidity.
Additionally, we want to ensure that the currency pair has sufficient volatility. Liquidity is important because it provides us the ability to trade in and out of our positions with minimal slippage cost or market impact. The most liquid forex instruments include the major currency pairs, and a few cross currency pairs.
As for the requirement that are chosen instrument have a sufficient amount of volatility , what that essentially means is that we want to ensure that the instrument has enough movement for a trade to make sense. This condition will further narrow the prospect list. Below are the five best Forex pairs for swing trading based on having both high liquidity, and high volatility characteristics. EURUSD — This is the most liquid currency pair within the foreign exchange market.
It is widely traded throughout the globe, and the price movements within this pair make it ideal for a swing trading approach. GBPUSD — The British Pound to US Dollar currency pair is very actively traded. It often has a strong correlation to the EURUSD currency pair. AUDUSD — This is a favorite among traders in Australia and the Far East.
EURJPY — This is a very liquid cross currency pair that is often characterized with large daily price swings which can sometimes exceed pips. It is a favorite among more active swing traders looking to capture short-term price trends.
GBPJPY — The Pound to Yen currency pair is highly volatile, and is most active during the European and Asian sessions. Minimal Time Commitment — Most swing trading strategies can be managed in less than an hour a day. This is something that is hard to grasp for many beginning traders, but it is certainly true if you have a focused process in place. Lower Transaction Costs — Many forex swing trading systems will only trade several times per week.
As such, you can expect to generate approximately 75 to trades per year. This is the normal range of activity for most swing traders. Compare that to day traders who will routinely take several trades per day. This can result in anywhere from several hundred to even a thousand trades or more per year. When you factor in the total transaction costs including the indirect costs of bid ask spreads , slippage, and commissions, a swing trading methodology will clearly be less expensive.
More Reliable Trade Setups — With a swing trading approach, you will be focusing on holding positions for as little as a few days to as long as a few weeks. The price patterns that occur on the various swing trading time frames are much more reliable compared to those that occur on both the smaller day trading timeframe, and the larger position trading timeframe.
The day trading timeframe is filled with noise which can make it extremely difficult to trade efficiently. The position trading timeframe can be heavily influenced by both fundamental and geopolitical factors which can also make it more challenging. More Types Of Strategies To Test — The majority of long-term position trading systems tend to be trend following in nature.
They will typically look for some sort of momentum breakout, and seek to enter in the direction of the breakout for a potential trend move. Day trading is a weapon that fulfils these dreams where aptitude and attitude of an investor matter in equal measures. Swing trading depends on distinguishing swings in stocks, commodities, and currencies that occur over a time of days. For example, swing trades may require a couple of days to half a month to work out.
Easily save as a PDF or print for daily use. Step 2: Draw Key Support and Resistance Levels. What is Forex swing trading? What is the difference between day trading and swing trading? What time frame is best for swing trading? Tshepo says Great inside, i m practising this strategy lately Reply.
Let me know if you have questions. Congratulations Reply. Justin Bennett says Pleased you enjoyed it, Alfonso. Sibonelo Zikalala says Great post as usual Justin Reply. Justin Bennett says Thanks, Sibonelo. Alli Adetayo A says Please Mr. I seek your help, be mentor to make it in life. I need money to survive. May God help you too. Alli Adetayo from Nigeria Reply. kelchi says join my telegram channel for free price action trade setups Reply.
Mandilakhe Makuleni says Hi Bro are you still trading as I need a partner to trade, share vital information Reply. Gulzar says Impressive trading style explained wonderfully.. Justin Bennett says Glad to hear that. Thanks for commenting. Bedin Jusoh says Excellent work. Thank you providing free info. Justin Bennett says Anytime, Bedin. Feel free to reach out if you have questions.
Roy Peters says Swing trading for life! Dan Budden says Totally with you on that one, Roy! Justin Bennett says Hi Roy, it is by far the best approach for a less stressful trading experience.
Khurram says Good way of teaching. Justin Bennett says Pleased you liked it. Dan Budden says Another helpful article and more confirmation that I am in the right place with Daily Price Action. Justin Bennett says Great to hear, Dan. Thanks for sharing. Durgaprasad says Great post. thanks Reply. Euphemia Nwachukwu says Hi Justin, you are there at it again, what a wonderful expository post.
Justin Bennett says Thanks for the kind words, Euphemia. Glad you enjoyed it. Daniel says Thank you Justin for your wonderful clear and concise presentation on swing trading. Many many thanks with best regards. Daniel Reply. David says Clear and concise delivery on how to trade using Price Action. Justin Bennett says Thanks, David. Always happy to help. Michael says How do i upload a picture here mr…….!?
Divergence gets you in before the move usually and lack of time gets you out fast. M Reply. Thanks Justin Reply. Nomsa Mabaso says Thanks Justin for information. vincenzo says Great refresher lesson Justin, thanks.
Danita says Thank you for all your patient teachings. Justin Bennett says Danita, the post below will help. ANANT says awsome post your hellp as a technical expert is valuable to us Reply. ANANT says if i want to hold position for more than 6 months is it good to use monthly time frame Reply. Steven says Thanks Justin for this free forex education i am better now and i can see the progress, All i need is to join the community Reply.
Let me know if you have any questions. Thanks for stopping by. Sydwell says I used to think swing trading and day trading is one and the same thing,now I know on which side I belong,thanks Jb Reply.
Nadzuah says Thanks justin Reply. Rakhi Pawar says Good article Thanks for sharing great information of Forex Swing Trading. Andre Steenekamp says Hi Justin I have been missing out on profits with my trades by not identifying a target. I have gone trough your Forex Swing Trading lessons which has cleared my mind but what I would like to know is whether I should move my stop to the resistance or support area when the price has moved beyond Kind Regards Andre Reply.
simon says Love your work Reply. Anbudurai says Great post sir Reply. Shirantha says Ah, nice article. Metalchips says WoW.. kevin says Greetings guys. Be it advice, books to read or anything that can help me move forward Reply. Please help Reply. Ifeanyi Alex Robert says You are a great teach, God bless you with more knowledge, looking forward to join the forum Reply. Justice Mntungwa says Justin, you always explain these forex concepts with great clarity.
Shedrack says Thanks. Aurthur Musendame says Thanks. This was quite informative. You should write a book with all this info. Roy says if you check the whole site. Aubrey says Thanks i needed a boost i was lacking a little of these Reply.
heshmat says hi justin. please check it Reply. andrew mbene says thank you so much for this priceless information. God bless Reply. alphonsus chukwu says Great post my boss hope one day I will be under your mentorship Reply.
Songs says Hi Thanks for the content. Tebogo Moropa says Hi there.. i would like to be a swing trader Reply. Uzoma Nnamdi says Thank you sir. Michael says Mr. Martine Otieno Owino says Very proud to be part of this noble lessons.
priscilla says Please may i ask if it will be good using the zigzag indicator on meta trader platform to get the swing high and low. Emem says Trade broken to the understanding of a novice. I really love this Justin Reply. Funmi says Thank you for this your great heart of giving, and not just giving, but qualitative and insightful giving.
Ejay says Very well explained and easy to grasp. Good job. Peter Uche says Thanks a million for your time and your ideas that are free shared here. Glad I could help. Jukaki says JUSTIN. This is highly appreciated. Thanks for checking in. Tshepo says Thank you for the lesson, new to trading and tried a few, I hate scalping been trying swing and failing a times, the lesson helped me a lot.
Pleased to hear you found it helpful. siyabonga says thanks a lot my brother Justin,I am willing to learn this style it looks good for me. Anant says Really great article Thank you Reply. Muhammed Abdulrazak says This is the first time I understand how trade goes, I love it. Muhammed Abdulrazak says More benefits on swing trade, 1 spreads will never scared you, 2 commissions too, I pity scalpers😂😂😂😂 Reply.
Jericho says Sorry to ask, but where is the download link? sunil says send indicator Reply. Justin Bennett says Cheers! I greatly appreciate that. Jane says Thanks soooooo… Much for making Forex trading easy to understand. Portia says I want to start swing trading.
Please assist me to start trading Reply. GEORGE PAPAZOV says Hey Justin, Thanks a lot for sharing a great and informative article on this topic. Thanks Reply. Peter Mfolo says I am new in Forex Trading, but the way you explain Swing Trading is absolutely amazing and even encouraging to study it more and practice it. Ajay says Nice insight. Mpho Raboroko says I bumped into your youtube videos last month, and ever since then I have been following you.
hassan khan says Man you are a master piece. Excellent Work!! Always stay blessed.
Which pairs you opt to day trade or swing trade will depend on your trading style. New to forex? I created a comprehensive Forex Intro course that gives you an overview of this market, helping you to determine if it is right for you and which style of trading suits your personality.
The less time a trade lasts, the more attention that strategy requires. A day trade that lasts 3 or 4 minutes requires steady focus. That trade will be exited and there may be another opportunity, or possibly the exit requires a manual action on the part of the trader.
The trader may look for more trades, but this may only take 20 minutes a day, and then the work is mostly done on that trade for the next several hours or days. Next, we need to consider if the trader actively manages the positions, or if they set stop losses and profits targets and then leave the trade alone. Actively managing a trade—determining when to exit in real-time—takes a lot more focus than setting a stop loss and profit target and walking away.
When day trading a 1-minute chart, focus on trading one pair well. There are enough opportunities in a few-hour period to make money.
Trying to trade more than one pair will likely spread our focus too thin , and we may end up missing some trades as we try to jump back and forth between multiple charts. For day trading, I recommend trading the EURUSD.
It is the most heavily traded currency pair in the world and typically has the lowest spread a trading cost. Occasionally the EURUSD will be moving very little, not providing a lot of opportunities.
The GBPUSD usually moves a little more than the EURUSD, so in such cases, the GBPUSD could be day traded instead of the EURUSD.
Day traders using a 5-, , or minute chart , if you are conformable and feel you have enough time to monitor multiple charts and trades, that should be fine. The same goes for day traders with partially or fully automated strategies.
Trade more pairs, if desired, since the automation means there are fewer tasks you need to manage yourself. For swing traders that actively manage trades, it is better to trade those positions well. Maintain focus rather than try to juggle too much at the same time. Ideally, if trading multiple pairs at the same time, those positions should be uncorrelated.
Want to learn how to day trade the EURUSD? The EURUSD Day Trading Course shows you how to crush the forex in under two hours per day. With swing trading, typically we can look through more charts to find trading opportunities. This allows us to maintain focus when we need it, even when analyzing multiple pairs or managing multiple positions. If new to trading, start by looking through the currency pairs in the first column of the list below.
These are commonly traded pairs involving major global currencies. They will provide lots of opportunities. If you have the time, and you are trading the pairs in the first column well and according to your trading plan , consider looking through the second column.
The second column pairs are still composed of major global currencies. Only add in more currencies if you are profitable trading the first column. These traders could look for trades in the third column as well. The third column has pairs that include non-major currencies.
These pairs tend to be more thinly traded and thus tend to have larger spreads. They may also have pip values that are very different than what we typically see in columns one and two. Therefore, only add these pairs if you can comfortably adjust position size based on varying pip values, spreads, and volatility.
Ideally, if trading multiple pairs at the same time, those positions should uncorrelated. We can run into traps no matter what we do. We tell ourselves a low-quality trade still has a chance of boosting our account value.
Maybe a few times we get lucky, but if we take many poor quality trades, over time we will lose. Similarly, looking through too many charts can make us feel that there are trades in all them of, instead of comparing the charts to see which one or two offer the best opportunity. Or possibly, looking through too many charts freezes us! So there is no perfect answer on which pairs to trade.
Our trading styles and personalities can complicate things. The ultimate goal is to be honest with ourselves, and no matter what, put ourselves in the best position to take quality trades.
For some people that will mean limiting the number of pairs they look at. For others, it will mean looking at lots of pairs. Consider your trading style, the length of your trades, and how much time you need to put into each trade.
Then, during a weekend when there are no trades to distract you, come up with a plan of action that works best for YOU. And no matter what pairs you trade, make sure you know how much position size of that pair you should be trading on any given trade.
Write down which pairs you are allowed to trade in your trading plan—your written document that outlines how you trade. Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything.
Trading is risky and can result in substantial losses, even more than deposited if using leverage. Cory is a professional trader since In between trading stocks and forex he consults for a number of prominent financial websites and enjoys an active lifestyle. He runs TradeThatSwing and coaches individual clients.
Keep triangle balanced for risk control and if one leg is unbalanced use stop loss only on THAT LEG. Thank you. I have never traded that way, so not sure if it is good or not. I primarily day trade the EURUSD. Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email. Sign Up for My Free Weekly Trading Tips Newsletter. Which Forex Pairs to Trade — Day Trading and Swing Trading Here is a list of forex pairs to consider trading, based on your experience level.
Which Forex Pairs to Trade — Day Trading and Swing Trading April 25, Posted by Cory Mitchell, CMT Forex Day Trading Lessons , Forex Swing Trading Lessons 2 Comments. Main Takeaway Points If using a 1-minute chart for day trading, focus on trading one pair well. The EURUSD is recommended. The EURUSD Day Trading Course covers how to trade this pair in two hours or less a day although you could trade longer if you wish.
For day traders trading the 5-minute chart or higher timeframes, or that use partially or fully automated strategies, trading more than one pair is acceptable. But keep it manageable. Swing traders, consider looking through multiple pairs.
Pairs to consider are laid out in the chart below. Whenever trading more than one pair at once, be aware of correlation!
Highly correlated trades increase risk, while inversely correlated trades may reduce profit potential.
Which Forex Pairs to Trade Based on Trading Styles The less time a trade lasts, the more attention that strategy requires. All these things can be boiled down to a few guidelines: Shorter time frames and active management require more focus. This typically means the trader is better off focusing on one, and no more than several, currency pairs. Due to the short time frame of the trades, these pairs should be enough to provide lots of trading opportunities.
Longer time frames, and not a lot of active management, means more currency pairs can be traded, and may be required in order to find enough trading opportunities. These are not rules, just some guidelines to consider.
Which Pairs to Day Trade and Actively Manage When day trading a 1-minute chart, focus on trading one pair well. Which Pairs to Swing Trade or When Trades Require Little Attention With swing trading, typically we can look through more charts to find trading opportunities. About Cory Mitchell, CMT Cory is a professional trader since prem · Reply. June 4, at AM.
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WebStep 2: Draw Key Support and Resistance Levels. Apart from Step 1, this is the most important piece of the entire process. Think of drawing key support and resistance levels WebThe best forex pairs to swing trade are those pairs that frequently trend, for instance, EURUSD, GBPUSD, EURJPY and USDCAD. Any pair that is influenced heavily by WebHow Many Pairs Should A Swing Trader Focus On? If you’re just starting out, you might want to focus on 5 to 10 currency pairs. This approach will allow you to take advantage WebNZD/USD.: A major commodity forex pair, NZD/USD is a great choice for swing trading because its price swings are often correlated to movement in a commodity market. New WebIn the case of NZD/USD, that market is dairy. New Zealand is a top five global exporter of dairy, and the combination of this market influence with the high liquidity and volatility of WebStruggling to choose the best forex pair to swing trade? The best currency pairs for swing trades are EUR/NZD, EUR/AUD, EUR/CAD, GBP/AUD, GBP/CAD, and GBP/JPY. The ... read more
Ejay says Very well explained and easy to grasp. Most Forex swing trades last anywhere from a few days to a few weeks. Most traders feel like they need to find a setup each time they sit down in front of their computer. Uzoma Nnamdi says Thank you sir. If it does not, then the probability of success on the trade begins to diminish.Roy Peters says Swing trading for life! The best forex pairs for swing trading goes for swing trading. Because of the characteristics noted, swing traders will gravitate towards trading timeframes such as the daily chart, the eight hour chart, and the four hour chart. Please assist me to start trading Reply. Another characteristic that is quite common among swing traders is that a large majority utilize technical analysis as their primary market analysis approach. In between trading stocks and forex he consults for a number of prominent financial websites and enjoys an active lifestyle.