How to find trending forex pairs

hello i use strength indicator but this indicator show momentary strength which way is best to find trending pair's {i'm day trader} best regard.
Table of contents


  1. Currency Crosses Are Trend-y.
  2. Most traded currency pairs.
  3. How to find the Right Currency Pair to Match Your Trading Strategy;

Below you will find information on the most popular currency pairs with the highest trading volumes. There is also plenty of information available online on each of them, should you wish to do further research. There is a total of 8 major currency pairs; all of them involve the US Dollar. If the US dollar is not one of the currencies in the pair, it is not considered a major currency pair.

The Euro to US Dollar currency pair is the single most widely-traded forex pair in the market and comprises the currencies of two of the world's biggest economies. Due to its high liquidity, it tends to be somewhat less volatile than other currency pairs, however, traders should be aware that even the most liquid instruments can become highly volatile under certain conditions. The United Kingdom and the United States are two of the largest western economies and share very strong trade relations.

The Candian Dollar is strongly tied to commodities trading due to the fact that Canada is a large exporter of oil, minerals and grains. We use the following methods to assess the trendedness of the currency pairs:. Rate of change is calculated as previous Close minus current Close and divided by previous Close to get the percentage value.

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Obviously, this is a crude method of analysis. However, it can give us some hints on the pairs that trend often. It is calculated in percentage points too. The above calculation would be only a starting point.

Most Popular Forex Pairs | Plus

To identify the best of the trending currency pairs, we need to calculate precisely the number of periods a pair had been in a trend during some span of time. We need a dependable indicator to identify trend in three different timeframes. We use moving average for that purpose. Beginners are often advised to use an exponential moving average instead of a simple one as the former lags less i. We verify that as well by applying the calculations to both simple and exponential period moving averages.

Consecutive bullish and bearish candles show how likely is a bearish candle is to be followed by other bearish candles and the same for bullish ones. All calculations are repeated on three timeframes: daily, weekly, and monthly. All currency pairs are analyzed using the data of 5 years back from February 17, We can calculate the absolute change in the exchange rate of a currency pair in a given period day, week, month , using the following formula:. The median rate of change is calculated by sorting the individual rates of changes T n and either picking the middle one for odd number or calculating the mean of the two middle-most rates of change.

We have to use the percentage values because direct pips rate of change would differ significantly among currency pairs as their exchange rates are not comparable. The table above shows how mean and median changes per day, per week, and per month differ among currency pairs. Still, the 0.

If we look at the median monthly change, the contrast between 2.


  1. forex history pdf.
  2. Selecting Trending Currency pair for Forex Trading.
  3. Which Forex Pair Trends the Most.

The median volatility is calculated by sorting the individual volatility values V n and either picking the middle one for odd N or calculating the mean of the two middle-most rates of change for even N. As you can see, the mean and median volatility of the studied currency pairs varies even less than the rate of change.

The weekly volatility graph paints a similar picture.

AUD NZD - The Best Forex Pair To Trade

From the rest of the pairs, the daily and weekly average volatility rankings are alike. The monthly average volatility data does not provide any surprises. The daily, weekly, and monthly volatility data indicate that the same currency pairs occupy the top three places.

1. The Highs and Lows Tell the (Whole) Story

Similarly, the same currency pairs occupy the fourth to seventh positions in the daily, weekly, and monthly volatility ranking list. One of the most elementary methods to detect Forex trends is to use a moving average.

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We calculate the average and median number of consecutive closes above and below a period daily, weekly, and monthly moving average SMA and EMA. However, their averages are only Additionally, a pair has to close above its open level for a rising trend and below its open for the falling trend. Notably, all three best pairs here are quoted in the Japanese yen.

The yen continues its domination in the list of best trending currency pairs on the weekly chart as well. Our research has revealed the following facts based on the studied period of 69 months:. The behavior of a currency pair as identified in the study may or may not hold good because the past performance is not an indication of the future performance. However, our humble research can certainly serve as a starting point for traders looking for a suitable currency pair to trade on daily, weekly or monthly charts.

Tags: currency pairs , Forex science , statistics , trend. Awesome research, thanks for sharing, any schedule for updates, maybe ever 6 months? Be interesting to see any underlying changes. Hi, Thank you for your fantastic research.

3 Powerful Techniques to Determine Forex Trend Strength in 2021

Can you tell us how we connect that with Renko? I developed a good strategy with Renko and range-bound pairs adjusting the bricks width with Center of Gravity. I think if I use it with trendy pairs it will make more success with some adjustments. Can you tell me your thoughts in using Renko with trendy pairs? Andriy Moraru Reply: December 6th, at am. I am not a big fan of Renko charts and do not use them in live trading.

However, from my understanding, they are good at detecting trend reversals. So, naturally, using them with the pairs that trend more will produce more consistent results. When you talk about the HHHL streak and for example have 1.


  • que paso con forex en colombia.
  • How to determine the trend.
  • Most Popular Forex Pairs;