Attempting to exploit strong trends is the most common strategy to profit from Forex trading. However, your favored currency pair(s) may not always produce the great growth you desire. Let’s have a look at which currency pairing are best for trend following right now. Ignoring the fact that trend detection is personal, there are specific ways for detecting excellent trending behavior.
Of course, the time periods you trade on will have an impact on your judgment of the current trend’s direction if there is an existing trend.
Forex Trending Currency Pairs Study
A trader who just views 5-minute charts may regularly differ from someone who watches daily and 4-hour charts. To determine if currency pairings are trending, several approaches and indicators are employed.After then, there are several sorts of trends.
Some are unstable (angular), while others are smooth.
Some are strong, while others are weaker. In this post, we look at ten different currency pairings’ daily time periods.We also use logarithmic moving averages to calculate price changes over four main time periods.In an uptrend, we expected to see higher highs and higher lows, whereas in a downtrend, we expect to see lower lows and lower highs.
There are following currency pairs that are more trending in the forex market.
Forex Pairs with Highest Daily Range
An experienced trader will detect that political uncertainty has been quite low over the last year by scanning this. Many of these couples are also in the same place they were a year ago. As a result, we shouldn’t expect to see the huge trends that many Forex traders dream of when looking at the charts of these pairings.
The four exponential moving averages on this EUR/JPY daily chart indicate a good bearish trend.
However, the trend is problems associated, with severe pullbacks occurring on a regular basis. Despite a few moments of sideways recovery over the previous 12 months, there have been some incredibly friendly opportunities to short this pair.
Actually listen to the Growth rates indicator, which shows how retail traders are currently holding long amounts. As a result, we may anticipate a decline in the near future. When we look at the EUR/latest JPY’s price waves and crashes, we see lower swing highs and lower swing lows.
Most Volatile Currency in the World
Of course, due to the rough and rough nature of the trend, we must tread carefully.
The NZD/USD is likewise in a decreasing value. Our four exponential moving averages are integrated, with the 20-EMA being the closest to the price and the 50, 100, and 200 following closely after.NZD/USD has been one of the top performers (percentage-wise) during the previous two weeks, indicating that the negative trend is still strong.
The AUD/USD has dropped more than 7% in the last year, which is higher than most of the other pairings in our table. It is clear that the pullbacks against the main decline on the EUR/JPY and NZD/USD were typically less harsh.On this daily chart of the AUD/USD, four exponential moving averages are likewise linked. This implies that there is still a lot of selling pressure on this pair.