Currency Converter - Exchange Rate Calculator for Trading
How much is 1 Dollar to your currency and vice versa? This currency converter automatically counts the exchange rate based on the current rate in the market. Just put the value you need to convert from one currency to another and get the result.
How to read correlations between currency pairs?
Some pairs often move in different directions or, conversely, move in the same direction up to a certain degree. In the following graph, several pairs have more than -80 hourly correlations. That means they are negatively correlated; when one pair moves upward, the other one tends to move downward.
Continue Reading at Introduction to Forex Hedging Strategy
What are the best technical indicators to trade volatile currency pairs?
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Bollinger Bands: It is a technical indicator that can measure market volatility. The bands widen when volatility increases and narrow when volatility decreases. Traders can use Bollinger Bands to identify periods of high and low volatility, overbought and oversold conditions, trend reversals, and support and resistance levels.
- Average True Range (ATR). The ATR is a technical indicator that measures the average range of a security's price over a specified period. The higher the ATR, the more volatile the market is.
Continue Reading at How to Trade Volatile Currency Pairs
What is the risk of hedging the same currency pairs?
If the price moves erratically and you don't see any confirmation until it is too late, both stop losses might be touched, and you might gain double loss compared to if you did not hedge, as much as the gap between both positions. Few traders are able to do this successfully, so it's not widely recommended for new traders.
Continue Reading at Introduction to Forex Hedging Strategy
What currency pairs are the best for swing trading strategy?
Here are a few currency pairs that swing traders commonly favor:
- EUR/USD: provides good liquidity and price movement. It is known for relatively low spreads and ample swing trading opportunities.
- GBP/USD: another popular choice for swing trading. It exhibits solid trends and volatility, appealing to traders looking for opportunities in price swings.
- USD/JPY: known for its liquidity and is influenced by the US and Japanese economies. It can offer significant price movements and is favored by swing traders who want exposure to the Japanese market.
- USD/CAD: influenced by factors such as oil prices and economic conditions in the United States and Canada. It can offer good volatility and is suitable for swing traders interested in commodity-related currencies.
- AUD/USD: often influenced by commodity prices, particularly gold and iron ore, as well as Australia's economic performance. It can provide opportunities for swing traders seeking exposure to the Australian economy.
Continue Reading at What Is Swing Trading?
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