There are 5 major AUD-related pairs in foreign exchange Sydney. Each foreign exchange Sydney related pair has its own personality and you’ll need some practising – with a “demo account” – to decide which pair suits your trading style. The AUD/USD is brash and opinionated; and, it’s usually pretty easy to see it coming and going. The AUD/JPY is like the morning fog over Lake Biwa – now you see it; and, now you don’t. The AUD/NZD spends most of its time mimicking a bunch of leaping lemurs; beginners, don’t get in the way. The AUD/GBP is a lemur wannbe that has just a bit too much European heritage to lead the parade, but what esprit de corps! The EUR/AUD marches solidly onward, trending in very well defined channels most of the time – a long-term trader’s dream come true?
Beginners might want to cut their trading teeth on an AUD/USD, 1-hour chart, using a “Williams Alligator”. The “Alligator” s composed of 3 different moving averages whose crossover signals when to enter a trade and when to exit.
Why Choosing Currency Pairs Is An Important Element Of Foreign Exchange Sydney
In forex, no 2 currency pairs are alike. Each pair marches to its own drummer. For this reason, before you trade a pair, you must understand what is happening with the pricing of the pair and why. The easiest way to do this is to start with a monthly chart and run some trend indicators (like the “zig zag”) so that you can see the long-term trend. Then, move to the weekly chart and do it again. Then, move to the daily chart and do it again. Then, more to the 4-hour chart and do it again. By this time, you should have a pretty good feel for what is happening pricing-wise. Reading recent bank forex commentaries also can help.
How Do You Know Which Currency Pairs To Choose For Foreign Exchange Sydney
There are approximately 80 currency pairs that are openly traded on a daily basis. Compared to most pairs traded, AUD-related currency pairs are fairly volatile. So, if you’re a beginner, use an “Average True Range” (“ATR”) indicator, on a daily chart, to figure out the relative volatility of the pair you are thinking of trading. Very generally speaking, the AUD/USD is usually not as volatile as the AUD/JPY or GBP/AUD. The EUR/AUD is relatively sedate to the aforementioned pairs, but the AUD/NZD is unto itself in relative volatility. This means that beginners should cut their trading teeth on either the AUD/USD or the EUR/AUD. Please note that, for the AUD/USD, the first hour of Sydney’s trading day can be fast-paced.
Profitable Foreign Exchange Sydney Currency Pairs
Any newbie might want to try trading a 1-hour chart of the AUD/USD, Monday – Thursday only, with a “Williams Alligator”, on a “demo account”. The “Alligator” is formed of 3 different moving averages, the shortest of which is the fastest line (called the “trade signal line”). By watching all 3 lines move across the chart, you can get a good idea of the range, tempo and volatility of what is happening. Specifically, you are watching for the fastest line (usually an 8-period average) to cross over all the other lines. When that happens, you launch a trade in the direction of the crossover, staying in the trade until the next crossover. Use “volatility stop losses”; stop all trades at day’s end.
Get a free Forex PDF PLUS:
- 14 Video Lessons
- Free One-on-One Training
- A 5000$ Training Account
- In-House Daily Analysis
- Get FULL ACCESS