Sometimes it’s difficult to determine when to trade a given currency pair. I know that if we try hard (if we force it), we’ll find a reason to trade any currency pair, but, is this our main goal? I don’t think so. Our main goal is to determine WHEN to trade. I always like to trade currency pairs, that have a clear long term and middle term condition. If I don’t see a clear long term view, I rather focus my risk capital in other pairs.
Here is one example, take a look at the next chart:
Can you determine the market condition here?
This is a clear undefined range, the market keeps bouncing back and forth from different support and resistance levels, making it hard to determine those turning points (where we try to enter the market).
This is a clear example of a non tradable pair.
Sometimes the market (or some currencies) doesn’t want to be traded, we are better off risking our capital on other markets (or other currency pairs), we have plenty of them anyway.
Our job as traders is not to trade every day, but to determine when to trade.
Tags: undefined range