S/R on Minor Forex Pairs and Crosses

[blueberrycake 10]

I've recently been trading the major forex futures (6E, 6J, 6B, 6A), and have been pleasantly impressed with the quality of trends, as well as their respect of important S/R lines.

 

Having started looking at spot forex, I realized that the number of currencies and crosses available for trading is quite extraordinary. The liquidity seems a bit thin on some, but probably sufficient for longer term trading on 1D and 1H timeframes.

 

I am curious, for those of you that have experience with a broader range of currencies, are there any minor currencies & crosses that are worth trading? By "worth trading", I mean that they respect horizontal S/R lines and MAs, and have good volatility / tendency to trend.

 

-bbc

[brooky29 10]

Hi Blueberrycake.

 

I have found that while many of the crosses may have a reasonable liquidity, often the cost of doing business ie: spreads make the risk reward a bit hard to achieve compared to the range of the pair that day.

 

I found a very useful indicator that will let you know if it is worth trading a particular currency.

 

You can see it on the attached chart on the top right.

Basically any spread percentage under 5% is worth a look, but over 3% is really getting too expensive.

 

That particular indicator is not mine, but Hector has a great explanation of it at the following link.

What Currency Pair To Trade

I can't remember if I had to sign up or not to get it but I did and he has some very cool info on his site.

[Kiwi 16]

You asked two different questions ... trend/volatility and respect for S&R.

 

IM experience the likes of EJ and GJ can offer excellent trend/volatility even applying brooky's spread/averange test to determine costs. But S&R is determined on the majors as that is what the money is watching so you need to look at EU, UJ and GU while trading them to find "valid" S&R areas. Often they will appear to work - but generally that occurs when the majors hit S&R at the same time.