Page 1 of 10 123 ... LastLast
Results 1 to 10 of 94
  1. #1
    Specialist Member marc's Avatar

    Currency characteristics? !!!

    I would like to hear your opinion about the different characteristics of the major currency pairs ...

    I my first months I traded mostly EURUSD, GBPUSD and EURJPY ... my strategy back then was mostly dependent on high volatility and many reversals ... and on some days EURJPY has driven me crazy with long steady trends in one direction ... and GBPUSD had quite a violent volatility sometimes in comparison to EURUSD

    But as my trading career is still short, I don't know if my observations were correct

    So – news announcement times aside – how would you describe the different behaviour of the major currency pairs on 'normal' days? ... and if there is any difference, do you have any idea why is that?

  2. #2
    Legendry Member willyw's Avatar
    Quote Originally Posted by marc View Post
    I would like to hear your opinion about the different characteristics of the major currency pairs ...

    I my first months I traded mostly EURUSD, GBPUSD and EURJPY ... my strategy back then was mostly dependent on high volatility and many reversals ... and on some days EURJPY has driven me crazy with long steady trends in one direction ... and GBPUSD had quite a violent volatility sometimes in comparison to EURUSD

    But as my trading career is still short, I don't know if my observations were correct

    So – news announcement times aside – how would you describe the different behaviour of the major currency pairs on 'normal' days? ... and if there is any difference, do you have any idea why is that?
    Marc, each currency pair has its own characteristics just like us human beings. The volatility also represents the big market players trading in the market for each currency pair. Each market player don't trade all currency pairs; they specialize in only a few pairs, ie 1 or 2 pairs. Market players are traders too, they have their own style of trading which will be reflected in the currency pair movement.
    For my 26 years in the industry I dont trade all pairs, I specialize in 1 pair, USD/JPY and if its stalling or sideways I will trade the Eur/USD.
    Like the saying says "Jack of all trades and master of none". So its best to master 1 pair and know its characteristics and behaviour.

  3. #3
    Specialist Member marc's Avatar
    Thanks willyw for the good explanation ...

    So, how would you describe the character of the pairs you trade?

    And although it may be somewhat subjective, it would be interesting to hear the opinion of all BOTS members on this matter and the currencies they 'know' ...

    Gathering this information here in this thread could be valuable for everone (especially for the newbies like me) because depending on the strategy, like 'trend-following' or 'reversal' there can be pairs which are better suited as others

  4. #4
    Legendry Member willyw's Avatar
    Quote Originally Posted by marc View Post
    Thanks willyw for the good explanation ...

    So, how would you describe the character of the pairs you trade?

    And although it may be somewhat subjective, it would be interesting to hear the opinion of all BOTS members on this matter and the currencies they 'know' ...

    Gathering this information here in this thread could be valuable for everone (especially for the newbies like me) because depending on the strategy, like 'trend-following' or 'reversal' there can be pairs which are better suited as others
    I can share with you how i did it but you have to adjust accordingly as trend has changed. When I started I was employed as trader and there is no computer software so I use hand-drawn charts plotting more than 20 years of data on big rolls of graph paper; i think is 5metre x 20 metre. As I plot I analyze each bar and after completing I update the bars daily. I use to sit in front of the screen for 18~20 hours a day watching the price movement and observing how they fluctuate and taking note the time they are most volatile and when they are less volative and how they move and behave and observe what are key price levels that usually has price actions which needs attention. I plot point & figure charts using tick prices. I also made a journal of the price movements.

  5. Thanks Lelyz9 thanked this post
  6. #5
    Specialist Member marc's Avatar
    Hmm ... I don't know, if I understand you correctly now ...

    Do you think, that there is NO overall charactistic of the different currency pairs? ... that every behaviour is just punctual?
    I thought, that maybe there could be made general statements, like e.g. "EURUSD is usually more volatile than EURJPY"

    And the intention of this thread was to gather the opinions of all experienced traders about these differences

    [Hey, where are all the other BOTS experts, btw? ]

  7. #6
    Active Member
    The characteristic of a currency generally corresponds to the the economy of the country it represents. For example, EUR takes the characteritic of the euro zone economy, USD-United States economy, and so on.

    In terms of volatility, I expect the currency of a stronger economy to be more volatile than a currency of a weaker economy.

  8. #7
    Specialist Member marc's Avatar
    I seem to fail miserably trying to explain what kind of information I would like to read here in this thread

    So let's try again ... just describe based on your experience which characteristic the pairs have (and maybe why):

    EURUSD = volatile? has stable trends? [....]? [....]?
    USDJPY = ???
    AUDUSD = ???
    ...

    If there would be no difference between the pairs, then a strategy should work on every pair, which is imho not the case ... and there would be no reason to have a preference trading a specific pair at all

  9. #8
    Master Member Bogdan G's Avatar
    Quote Originally Posted by willyw View Post
    I can share with you how i did it but you have to adjust accordingly as trend has changed. When I started I was employed as trader and there is no computer software so I use hand-drawn charts plotting more than 20 years of data on big rolls of graph paper; i think is 5metre x 20 metre. As I plot I analyze each bar and after completing I update the bars daily. I use to sit in front of the screen for 18~20 hours a day watching the price movement and observing how they fluctuate and taking note the time they are most volatile and when they are less volative and how they move and behave and observe what are key price levels that usually has price actions which needs attention. I plot point & figure charts using tick prices. I also made a journal of the price movements.
    You're cool! I wish I had the opportunity to learn trading the way you describe it. I know it's harder, but it's the purest form of price action. Nowadays everything is spoon fed to us and more often than not, we fail to see the great advantage we have.
    I'm really glad to know you man!

  10. #9
    Specialist Member marc's Avatar
    Yes, the way willyw used to trade (and still uses?) sounds anachronistic today, but I am sure this experience is invaluable!

  11. #10
    Master Member Bogdan G's Avatar
    Quote Originally Posted by marc View Post
    I seem to fail miserably trying to explain what kind of information I would like to read here in this thread

    So let's try again ... just describe based on your experience which characteristic the pairs have (and maybe why):

    EURUSD = volatile? has stable trends? [....]? [....]?
    USDJPY = ???
    AUDUSD = ???
    ...

    If there would be no difference between the pairs, then a strategy should work on every pair, which is imho not the case ... and there would be no reason to have a preference trading a specific pair at all

    Ok, let me help if I can. Simple and to the point:
    EUR/USD - choppy as crap. It will turn on a dime with almost no warning just to fake you out and then will move in the original direction...or not. CHOPPY

    GBP/USD - very similar to EU but it's a "moody pair". Sometimes it's harder to trade than EU and other times it trends, making it easier to trade. To me it seems "heavier" - meaning that a reversal will not happen as fast as on EU; it usually needs a re-test before it turns. By this i mean: price makes a higher high that looks like a top. Price will move again near that top before the real reversal occurs. I know it's complicated, but divergence is one of the greatest tools you will ever use and it helps you identify that re-test.

    AUD/USD - trending, almost a beauty! It retraces to the mean and then continues. Apply trend following strategies on this pair. BUT: a trend reversal on AU will more often than not occur after a Double Top/Bottom formation. Be very aware of this pattern on AU. When it ranges... it ranges and will remain that way until a strong fundamental event brings it out of the range.

    USD/JPY: strongly affected by fundamentals and rumors. But: when it starts to move, it will reverse after a consolidation period. I dont really know how to explain this but the pair usually turns after it moves sideways for a while. The re-test/divergence i talked about above helps.

    There you go mate. Hope it's what you needed. I just saved you a couple of years of chart watching hahahhaa.
    All the best

  12. Thanks Lelyz9 thanked this post

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3