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. A fast reversal rather than a price swing in your favor can quickly pile up losses for your trading account. With that said, here are six of the best forex pairs to start following in your swing trading strategy:. New Zealand is a top five global exporter of dairy , and the combination of this market influence with the high liquidity and volatility of this forex pair makes it a great option for swing traders to follow.

Current economic events in either Europe or Japan can have a direct impact on this forex pair, creating reliable technical indicators that swing traders can use to turn a profit.

This pairing also offers high liquidity, which will attract swing traders who are eager to capture quick profits. This gives swing traders an opportunity to maximize their profits by opening a position and riding the price gain or loss for the bulk of this long trajectory.

Looking for the right indicators to strengthen your trading strategy and identify lucrative forex opportunities? Some of the most popular indicators for swing trading include:. Swing trading is most successful when you keep your options broad and use technical analysis to identify the best price swing potential at any given time, so use the above forex pairs as a starting point for building out your watch list.

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Home » Forex Trading » The Top 6 Forex Pairs to Trade for Quick Trades. Forex Trading Trading. This also makes the currency attractive in risk-on markets. Contrariwise, and as already discussed, the JPY only catches the attention of risk-averse traders. Since the Brexit vote, the British pound GBP has been one of the most volatile currencies in the world.

This worsened during the Brexit negotiations, whose highlight was elevated uncertainty. We are yet to see the finale to the Brexit debacle, meaning the currency still rests on a shaky foundation going forward. On the other end of the coin, the AUD is among the top five most volatile currencies in This has a lot to do with the Australia-China geopolitical tensions and trade disruptions due to the global pandemic.

Put together, the GBP and the AUD produce a forex pair capable of swings that could make a swing trader drool. Volatility is hard to predict, but traders with the right tools and knowledge can anticipate it. Skip to content Typically, foreign exchange traders fall into four classes: scalpers , day traders , position traders , and swing traders. Introduction to swing trading in forex Swing trading is a forex trading style used to exploit price swings for profit.

Swing high vs. swing low The most exciting part of forex is that you can trade both sides of the market. Best currency pairs for swing trading So far, it is apparent that swing traders thrive in a market with sufficient volatility to generate sharp shifts in price action.

The currency pair should exhibit substantial volatility. The currency pair should have sufficient liquidity. AUDJPY The Australian dollar AUD has an exciting relationship with the Japanese yen JPY. CADJPY Interestingly, the CADJPY displays the same relationship as AUDJPY.

GBPAUD Since the Brexit vote, the British pound GBP has been one of the most volatile currencies in the world. The bottom line Volatility is hard to predict, but traders with the right tools and knowledge can anticipate it.

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Typically, foreign exchange traders fall into four classes: scalpers , day traders , position traders , and swing traders. On the other hand, day traders and swing traders fall somewhere in the middle of the continuum. In particular, day trading involves opening and closing positions within a single trading day.

The approach aims to exploit the intraday volatility in the market. For swing traders, the time frame is longer than both day trading and scalping but often shorter than position trading. Each trading strategy fits a particular class of traders, and it could be inappropriate to pronounce any as the best. Nevertheless, today we will spend time on swing trading, emphasizing the best currency pairs to apply this strategy.

Swing trading is a forex trading style used to exploit price swings for profit. The market must experience substantial pressure from external forces to produce such a sharp shift in price action. The external force could be an unexpected interest rate decision or any other event with a massive impact on the global foreign exchange market.

A swing trader, therefore, aims to exploit the sharp shifts in price action. But this means one must be able to anticipate the swings. Unfortunately, some of the sudden changes are unpredictable, but experienced traders can foresee some. We should reiterate that swing trading is neither short-term nor long-term. 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. For starters, the AUD is popular in risk-on markets — when risk appetite is high. Traders love the currency in such conditions because it tends to generate returns.

More importantly, the AUD is backed by an economy that trades mainly with emerging markets in Asia, whereby Australia exports commodities like coal to China and other Asia Pacific countries. The problem is this relationship only pays off when the global economy is stable. As such, the AUD often exhibits high volatility. The JPY is a diametric opposite of the AUD, primarily because it becomes attractive in risk-off market conditions.

Traders view the currency as a safe haven, one that safeguards value in a downturn. Thus, the AUDJPY displays substantial volatility and is prone to sudden swings. In addition, the currency pair consists of major currencies whose global demand is sufficient to maintain an acceptable liquidity level. Interestingly, the CADJPY displays the same relationship as AUDJPY.

In the first place, the CAD also relies heavily on commodity exports, making it prone to volatility. This also makes the currency attractive in risk-on markets.

Contrariwise, and as already discussed, the JPY only catches the attention of risk-averse traders. Since the Brexit vote, the British pound GBP has been one of the most volatile currencies in the world. This worsened during the Brexit negotiations, whose highlight was elevated uncertainty. We are yet to see the finale to the Brexit debacle, meaning the currency still rests on a shaky foundation going forward.

On the other end of the coin, the AUD is among the top five most volatile currencies in This has a lot to do with the Australia-China geopolitical tensions and trade disruptions due to the global pandemic.

Put together, the GBP and the AUD produce a forex pair capable of swings that could make a swing trader drool. Volatility is hard to predict, but traders with the right tools and knowledge can anticipate it.

Skip to content Typically, foreign exchange traders fall into four classes: scalpers , day traders , position traders , and swing traders. Introduction to swing trading in forex Swing trading is a forex trading style used to exploit price swings for profit. Swing high vs. swing low The most exciting part of forex is that you can trade both sides of the market.

Best currency pairs for swing trading So far, it is apparent that swing traders thrive in a market with sufficient volatility to generate sharp shifts in price action. The currency pair should exhibit substantial volatility.

The currency pair should have sufficient liquidity. AUDJPY The Australian dollar AUD has an exciting relationship with the Japanese yen JPY. CADJPY Interestingly, the CADJPY displays the same relationship as AUDJPY. GBPAUD Since the Brexit vote, the British pound GBP has been one of the most volatile currencies in the world. The bottom line Volatility is hard to predict, but traders with the right tools and knowledge can anticipate it. Please Share This Share this content Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window.

Leave a Reply Cancel reply Comment. Enter your name or username to comment. Enter your email address to comment. Enter your website URL optional.

This is the ideal termination point for point D within the structure, and represents an excellent area for entering into the position. Although different traders have different definitions, below is the market consensus on the definition of swing. Chart Patterns — Classical chart patterns such as rectangles , triangles, pennants , and flags are still some of the most reliable formations that FX and CFD swing traders use. Swing traders on the other hand will often only realize reward to risk profiles of 3 to 1, 2 to 1 or sometimes a bit lower. By extension, the best currency pairs for this trading style must fulfill the two necessary conditions below.

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