Day trading foreign exchange Sydney can be quite a lot of fun. Early in the morning, open up 1-hour charts of the AUD/USD, AUD/JPY and EUR/AUD, putting a “Williams Alligator” on each chart. Then, sit back and watch what happens. If the AUD/USD starts moving, check the AUD/JPY to see if it’s moving too. If not, that means that the source of the movement is AUD-related, which means that the EUR/AUD should also be impacted. Now, you only have 2 charts to watch. Switch to a 5-minute chart for both AUD/USD and EUR/AUD. Watch the “Alligator” closely on both charts. Since the AUD is occupying different positions in each pair, these two charts cannot move in the same direction at the same time. Pick the fastest moving “Alligator” see how many pips you can collect before everyone breaks for lunch.
Using exponential moving averages (“EMAs”) for day trading can be rewarding. Many traders use a combo of 10- and 20-period EMAs. Others prefer a pair 8- and 34-period EMAs.
Developing A Successful Foreign Exchange Sydney Trading Style
A person’s trading style evolves over time. You might start out as a “day trader”, only to switch to “trend-trading” later on. Or, you might start with “swing trading”, only to realise that you actually enjoy trading shorter time period (i. e., “day trading”). Day traders use higher leverage ratios to produce profits; trend-traders, usually, do not. So, if you are risk adverse, you might find trend-trading to be more up your alley. Some people trade all day; others concentrate on morning sessions only. What you decide to do depends upon how much time you want to allocate to looking at a computer every day. The key is to find a balance that fits your lifestyle and interests.
Getting The Most Out Of Foreign Exchange Sydney Trades
If you are relatively new to trading forex, you might want to start out with using a “Williams Alligator” on a 15-minute chart of the AUD/USD. The “Alligator” is composed of 3 different moving average lines, the shortest of which serves as a signal line (when it crosses over all the other ones). Visually, the “Alligator” is easy on the eyes and makes a great teaching tool. Try to not get caught up in any “consolidation periods” (that’s when the “Alligator” is moving sideways). Wait for a breakout. The historical volatility of this pair virtually assures that it will happen “soon”. Get out of the trade when the “Alligator’s” shortest line crosses back over the others. Use volatility stops.
Profiting From Foreign Exchange Sydney Trading Style
A little bit longer-term strategy is using a 1-hour chart of the AUD/USD with two exponential moving averages (“EMAs”). Set the first EMA to 10-periods of time; set the second EMA to 20-periods. Notice how the 10-period EMA scoots ahead of the other line. That’s your signal line, i. e., when the 10-period EMA crosses over the 20-period EMA, you enter your trade in the direction that the 10-period EMA is going. When the 10-period EMA re-crosses the 20-period EMA, it’s time to get out. This type of trade may last more than a day. A short position may have to pay a “negative interest rate charge”. Alternatively, you can just close out before that 24-hour calculation is made.
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