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can someone give some insight on whats happening when it comes to fx.. for a while now it all seems like its barely moving so i only put a quick scalp in once a week or so an that's basically it. but it seems like everyone sees it as normal, continuing to talk about trade ideas.. how often are fx/futures traders trading?.. as im feeling like i cant catch much opportunities.. if anyone has some tips it'll be appreciated. i usually trade London session on 1 to 4hr time frames.. usually in slow times i just don't trade but its seeming like this for a while now, Ive been relearning stuff but it just feels like im going in circles catching things i learnt a few years back and im not completely sure if its relevant to the current situation.  i also understand about the signing of the trade deal recently/...this week an how coming into big events or recently the end of the year has markets slowing down but what about other times?

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@EMDE,

May I ask why you chose to trade FX? Do you have a trading plan and if so then what reasons did you put in your trading plan as to why specifically you chose FX?

Which FX pairs are you trading specifically and what is it about those specific pairs that provides you the reasons to trade them?

I personally don't trade them but the answer to the two questions may help others on the IG Community to assist you and it may help you to have a think about a few things.

In your opinion out of all the FX pairs which are trending the strongest either upwards or downwards and which pairs in your opinion would give you the strongest chance to trade in the direction of the trend and profit? If you can answer this then it may go a long way in assisting you. 

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i choose fx because it was basically affordable to start off in, Ive been looking at giving futures ago but still learning everything or not getting any where in the last 4 to 5 months so im not trying to jump the gun. mainly go for eur/usd an aud/usd... main reason is because they seem liquid an easy to identify a trend .. aus / dollar is usually safe for me, i feel like it sticks to its track, an have had good trades from it, as well as the eur/usd though.. i got a plan, im not completely sure how to explain it though.. but i look at higher tfs to identify the overall trend go back to lower tfs an try find a point from where itll run in the same direction.. look at events/news to see if it'll help carry it in that direction.. also use rsi and stochastic, wait for rsi to go below or above 50 to decide a buy or sell, look at stochastic over brought or over sold to see if its heading for my preferred direction... i don't trade heading into supply or demand zones..or support an resistance, and also don't trade if the candles spiked at a somewhat decent distance from the 20/50 ema as i have a sense it could pull back...but going by these last bits really seems like you cant pull anything off. ive been thinking of lower time frames like 30 or 15 mins to see i can catch some a bit faster than waiting for the 4hr or sometimes 1 but haven't worked out a plan for a lower tf yet. whats giving me the shits lately is with like eur/usd .. im not sure if its going to continue up further or reverse an carry on down.. but whats getting to me is the waiting ... and i am patient, but this is seeming long, even looking at directions of other pairs nothing seems to move much and i dont know if its just me sitting around, cause it seems like others on the net are actually trading.. or that im waiting on a to high of a time frame which is whats taking longer even though lower time frames seem to not move as well.. cause its all following the same price. i don't know if that's a decent reply/or along the lines of a decent answer to your question but that's where im at.. if i explained it correctly to catch any understanding from it.

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@EMDE,

So here are some of the issues which I think you may be facing. You chose FX because it was affordable to start trading in? Do you think this is a strong foundation and a strong reason? It seems you may not have much experience hence your question and how you refer to be learning over the past 4 to 5 months.

Liquidity is a main reason why traders select certain assets to trade. My main selection criteria is the 'Strongest Trending Assets'. So I want to identify them as early as possible and trade them only and ignore everything else that is available to trade. 

If you have a plan but are not completely sure how to explain it then there lies your problem. If you cannot explain your own plan then you need to simplify your plan. You need to start off by keeping your trading strategy simple. You need to keep your trading system basic and be clear what exactly your trading style is. Mine trading style is that of 'Trend Following'. It is not perfect and it does have its flaws but that is my trading philosophy that I follow. 

I use the 'daily' timeframe but I will look at the 'Monthly' and 'Weekly' and at times will zoom into the lower timeframes when looking at entry points and trying to assess if my stop losses are where I would want them to be.

I am hoping those who trade FX can come in and offer you some more specific assistance in trading FX as an asset class. I am yet to identify a specific FX which happens to be the 'Strongest Trending Asset' at a given time above other assets which are available to trade. I think the liquidity fact may have something to do with it. An illiquid asset can shoot up in price far greater than a liquid asset but I am not encouraging you to trade illiquid assets but merely making a point. That is more for high risk traders with more experience and specific skill set. 

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2 hours ago, EMDE said:

can someone give some insight on whats happening when it comes to fx.. for a while now it all seems like its barely moving so i only put a quick scalp in once a week or so an that's basically it. but it seems like everyone sees it as normal, continuing to talk about trade ideas.. how often are fx/futures traders trading?.. as im feeling like i cant catch much opportunities.. if anyone has some tips it'll be appreciated. i usually trade London session on 1 to 4hr time frames.. usually in slow times i just don't trade but its seeming like this for a while now, Ive been relearning stuff but it just feels like im going in circles catching things i learnt a few years back and im not completely sure if its relevant to the current situation.  i also understand about the signing of the trade deal recently/...this week an how coming into big events or recently the end of the year has markets slowing down but what about other times?

FX is near historic volatility lows which means little movement and tight ranges making FX very difficult to trade. I've written about this else where on the forum in the past (somewhere). The alternatives are to increase the size of your account and so enable increased bet sizes, concentrate on only the most volatile pairs, concentrate trading around news events where volatility is raised or simply find better markets to trade, indices are doing will at the mo 🙂

https://www.nasdaq.com/articles/why-fx-volatility-has-been-falling-and-what-to-do-about-it-2019-11-08

"there’s no doubt about it – volatility in the foreign exchange markets has been falling recently. The Deutsche Bank historical volatility index of the major G7 currencies, while not quite back to the lows of 2014, is certainly getting there."

image.png.d71bf1db79d9838d82eb3a1edf2e23ae.png

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@TrendFollower yeah summing it up im basically the same as you... follow trends but when you asked about my plan i taken a bit to seriously and explained the ins an outs of it all to see if someone can find faults an correct me.. 4 to 5 months isn't the amount of time Ive been trading its the amount of time i haven't or/ haven't placed many trades. i also try find the strongest pair but usually stick to the two i mentioned. @Caseynotes that's what i had in mind, but i was thinking there's little liquidity making it less volatile/no movement, i also wasn't sure if other traders are still in it.. so Ive kept watching fx pairs... i might have it mixed up on the volatile/liquidity bit. when it comes to indices they seem to have wide spreads... whats the strategy for entering with that? just go for it even with a wide spread?. @TrendFollower no i don't think it was a strong reason/foundation to start on but i made money with it in the past an just stuck with it up until today thinking i could continue.. it would be a better idea to find something that motivates me which ill be looking at now.

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4 minutes ago, EMDE said:

@Caseynotes that's what i had in mind, but i was thinking there's little liquidity making it less volatile/no movement, i also wasn't sure if other traders are still in it.. so Ive kept watching fx pairs... i might have it mixed up on the volatile/liquidity bit. when it comes to indices they seem to have wide spreads... whats the strategy for entering with that? just go for it even with a wide spread?.

There is potentially more liquidity available for FX than any other market, just little incentive to use it at the moment (low volatility). Traders have been watching the fundamentals and been quite happy to watch the eurusd go sideways for a year and a half. Choose your markets wisely, Dax and Ftse have a spread of  just 1 point, Dow 1.6 points, also take a look at the main commodities. Yes, stay away from high spreads, they instantly put you at a disadvantage.

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I feel the same way about FX, although I did find an interesting pair (notice how responsive it is in response to a negative news event):

GBP_JPY_20200117_09_58.thumb.png.d055880d63ba6e11b757c5b7f53401b1.png

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Commodities seems to move more?

 

 

Crude.png

Edited by Kodiak
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1 minute ago, Kodiak said:

Commodites seems to move more?

 

 

Crude.png

ha yes, implied volatility is a dead give away.

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Apropos of GBP/JPY, it tapped support/resistance a few times then dropped again.  Nice!

GBP_JPY_20200117_14_53.thumb.png.f195eed4eaef397f2074952adcf1ff4b.png

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Look now, it's tapping at the door of S1.  And if S1 refuses to let it in it will go and knock at S2's door :P

GBP_JPY_20200117_15_44.thumb.png.e3d09f244a1191fb3fd6930d13096539.png

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Chapping at the door my bonnie loon 😻

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