This is the most common question that most new traders ask. So how do we find the best forex pair and the best timeframe to trade? One simple but laborious method is to switch from one timeframe to another timeframe on a currency pair and find the best timeframe for that pair to trade. But when you do it on more pairs soon you will feel tired and will want to give up. It is not possible to scan around 2-30 pairs and find the best pair and the best timeframe to trade. So many traders just trade 1-2 pairs and stick with them through thick or thin. The most commonly traded pairs are EUR/USD and GBP/USD.
Suppose you are trading these two pairs and a very strong trend develops on USD/JPY pair which makes 1500 pips in 1 month. But since you are not trading this pair, you simply miss this opportunity. Or perhaps NZDUSD pair starts trending but since you never bothered to check this pair, you miss this opportunity as well. So sticking with just 2-3 pairs and trading them through thick and thin will make you miss a lot of great opportunities on the other pairs in the market. Some of these opportunities might be so lucrative that knowing them afterwards can make you curse yourself for having not taken the trouble to check those pairs.
Another thing that can help you a lot in increasing the odds of your winning is to find on the the different timeframes certain chart patters that tell about trend continuation or trend reversal with a high degree of probability. These chart patterns are often used by pro traders in their trading decisions. Spotting these chart patterns on the different timeframes can increase your odds of winning dramatically. So what are those chart patterns that you need to master if you want to succeed as a trader? The most common chart patterns are:
- Double Top and the Double Bottom
- Head and Shoulders and the Inverse Head and Shoulders
- Rising and Falling Wedges
- Bullish and Bearish Rectangles
- Triangles (symmetrical, ascending and descending)
You can read more about these common charts patterns on this Babypips article. These were the most common chart patterns. There are other chart patterns as well. Want to trade the Gartley Pattern? You can read this DailyFX article on how to trade with this Gartley Pattern. Now as a new trader, it is very difficult to correctly identify these chart patterns on the different timeframes. Even pro traders make mistakes when correctly identifying these chart patterns. After reading these two articles, you will realize how difficult it can become practically to identify these patterns on the different pairs and on different timeframes. So how to solve this problem. Use a good chart identification software. Yes! There are some good chart pattern recognizer software that can help you in your trading.
FX Trendy is a web based application that has been developed by the pro traders for the pro traders. Did you read the 33 page PDF on Understanding Market Trends And Patterns? It is a good PDF and it was written by these guys. What these guys have done is, they have solved the problem of finding the best pair and the timeframe to trade for others traders. They hired a professional programmer and developed this FX Trendy web based application.
What this FX Trendy application does is scan 34 currency pairs on different timeframes and then identify the best pair and the best timeframe for trading. This application shows the live charts of best trending pairs and timeframes. It also automatically recognizes the chart patterns like triangle, flags, wedges and trendlines on 34 different pairs and all timeframes. All timeframes mean from minute to monthly. What this means is that there are 9 timeframes for each currency pair for scanning. So this application infact scans 34X9=306 charts. Can you do it yourself? Not humanely possible. But this web based application can do it for you. Since there is nothing to download (this is a web based application), you can use any trading platform whether it is MT4, NinjaTrader, TradeStation or whatever is your favorite.
Trade in the direction of the trend if you want to increase your odds of winning. And don’t stick with just 1-2 pairs, use this FX Trendy App and find the best pair and the best timeframe to trade from 34 different currency pairs that even includes exotic pairs like USDNOK, USDSGD or USDHKD. Once this app has identified the best pair and the best timeframe, you can then use your own trading system for making the entry and the exit decisions. Now you might be wondering what is the price of this app. The price is just $37 per 3 months. Yes you just need to pay only $37 after every 3 months inorder to keep using this FX Trendy APP. Reduce the hard work from your trading. Trade smart with this FX Trendy APP.