Blogs Criteria for Currency Pairs Selection Before You Start the Market Analysis

Criteria for Currency Pairs Selection Before You Start the Market Analysis

The biggest mistake made by many traders over the years is that they will trade whatever currency pairs appearing in front of them. Right after logging in their accounts, they will straightaway perform the technical analysis only by viewing 2 or 3 graphs of currency pairs.To get more news about https://www.wikifx.com, you can visit wikifx official website.
　　Unfortunately, when the graphs do not fulfill their expectation, they will start to claim what just happened is a 'FAKE BREAKOUT', or a 'FAKE REJECTION'. Indeed, it happens when they ignore the important criteria for choosing a currency pair in trade, which will eventually cause a great loss to their tradings.
　　Life is full of CHOICES. Even when it comes to foods, the more nutritious ones with higher quality are selected because they offer us a healthier life. And of course, we will avoid the foods that are harmful to our health. It means that we must be very picky in choosing foods whenever we want to eat. Hence, not all the foods in front of us are worth eating.
　　Similarly, this is what we should do while we are trading. We must have a WHY criteria for CHOOSING a certain currency pair. If the broker offers us 30 currency pairs, it is not necessary for us to trade all them in random circumstances. This is simply because the movement & volatility of each pair is not the same. Thus, the most important thing we need to do before analyzing the market is to screen all the currency pairs offered to us. I repeat, ALL the currency pairs.

One of the features that distinguish one currency pair from another is its daily trading range. The higher the range of a currency pair, the more vulnerable it is to a massive risk in trading, and vice versa. New traders are encouraged to start the trades with a low range of currency pairs so that they are not exposed to a huge loss.
　　You can measure the graphs of daily trading range movement by measuring the length of D1 candlestickand considering the lowest price andthe highest price. You can click on the crosshair and measure the range from LOW to HIGH on that daily candlestick.　　Here is an example of a range reading that I have made in the last few months. This range needs to be checked over time as it changes with the seasons. But the change does not happen every day. Probably, the changes occur biweekly.