What do you think is the fastest emerging trend among forex traders? Probably to be a swing trader. If you are one of those who are eager to switch to this trading style, this post is for you.
Read till the end….!
Struggling to choose the best forex pair to swing trade?
The best currency pairs for swing trades are EUR/NZD, EUR/AUD, EUR/CAD, GBP/AUD, GBP/CAD, and GBP/JPY. The reason is that they are highly volatile to small price moves. They have high liquidity in the forex market that will bring more profit when prices swing.
This trading style cum technique is the right option for those who do full-time jobs. Swing trading can be the first footstep for becoming a full-time forex trader and quit your full-time job.
It involves a timeframe ranging from several days to several weeks. Devoting 1 to 2 hours regularly to trading is enough for swing traders. But consistency matters a lot!
What is Forex Swing Trading
Before we move on to the topic, it’s better to understand the concept of swing trading.
In general, swing trading is a trading technique in which traders try to make a profit from the price swings in the market. These anticipated price moves usually last in the market for a few days to a few weeks.
Swing traders have to rely on technical analysis to make the right prediction of a price swing. The main attempt of traders is to capture short to medium-term gains. They look for trading opportunities out of the chunks of the price move.
Best Currency Pair for Swing Trading
Looking for the best currency pairs for swing traders? Let me tell you, buddies, all currency pairs are profitable generally when it comes to swing trading. However, there are surely some pairs that we can call the most profitable currency pairs for swing style.
What makes the currency pair best for swing trading? Simply the pairs having high average volatility and excellent liquidity to price fluctuation are the best for swing traders. Overall, such currency pairs include EUR/NZD, EUR/AUD, EUR/CAD, GBP/AUD, GBP/CAD, and GBP/JPY.
Here is the list of top currency pairs for swing positions:
As we said earlier, all currency pairs fit well to swing trader’s convention. So, there are few other pairs also from Euro, Japanese Yen, British pound and US Dollar. Check out the brief description of each pair below:
Best Euro Pairs for Swing Trade
There are a few Euro pairs that move more pips per day. Such pairs are highly volatile. You can check the pip movement on investing.com. Below are the pairs that are profitable Euro pairs for swing traders. If you want to separate the best you can check how many pips they can move per day.
Top-rated Euro Currency Pairs for swing style include the:
Best Japanese Yen Pairs for Swing Trade
The choice of best currency pairs in forex is not as easy as it seemed to be. The pair USD/JPY is the top traded currency pair all over Asia. For swing style, it has high liquidity as record transactions are done on this pair in the foreign exchange market.
Top traded JPY currency Pairs include the:
Best British Pound Pairs for Swing Trade
GBP pairs have high volatility and instability of prices. That’s why they are 3rd level of liquidity forex instruments. Such pairs are good for traders who want to earn profit from short-term aggressive strategies. For this reason, they are the best choice for swing traders. Below are:
Top traded GBP Currency Pairs For swing trade include the:
Best US Dollar Pairs for Swing Trades
Every trader knows EUR/USD as the most traded pair. But it’s highly manipulating too for short-term aggressive strategies. That’s why the risk factor is high when swing traders focus only on this pair. But if they feel comfortable with it, they should go with this pair. It all depends on which pair brings more cash.
Top Traded USD Pairs for Swing Traders include the:
Currency Pairs Not Fit for Swing Traders
Slow currency pairs and the pairs with average pips below 100 per day are not good for swing style. For example, it would be hard to make a profit out of EUR/CHF as it moves only 53 pips While it would be rather easier to make a profit out of NZD/GBP, as it moves 205 pips per day.
Such currency pairs that show less volatility, as well as liquidity in the forex market, are not fit for swing trading. So, say no to trading in pairs below:
How to find out Best Currency Pairs for Swing Traders
Now the question arises how to figure out which pair is best for swing position? As we mentioned earlier, the main indicators are the average pipes move per day and liquidity of that particular currency pair. If you want to check pips per day move of all currencies, go to investor.com forex volatility calculator.
Can you swing trade forex?
Of course, swing trading is a methodology of capturing short-term price move positions. Such positions remain open for more than a single day. The main goal of traders is to get more profit out of such price swings. Not only in forex but swing trading can also be used, futures, stocks, options, ETFs, and cryptocurrency.
You can find more information about forex earing to this article about is forex a good way to make money.
Which EMA is best for swing trading?
For swing trading 50 is the best Exponential Moving Average or Standard Moving Average. It’s best for traders who are looking to follow trends. Because the period of 50 is ideal to compromise between too long and too short terms.
Can you earn a living swing trading forex?
Of course, swing trading will bring add up your monthly income. As traders do it as a part-time job. They spend 2 hours daily on it. So, they don’t have to leave their job to become a swing trader. They can earn a handsome living of 5000$, 12,000$, or 16,000$ per month if they are consistent and skillful. However, this living is quite low as compared to regular traders who earn money on daily basis.
From the above post, you can figure out the best currency pairs for swing trading this year. Many traders feel comfortable with the EUR/USD pair. It’s good but for swing trading, you may have to look beyond this pair. And you have to develop the psychology for swing trading.
Before choosing any pair do proper research. Calculate the volatility factor before making any decision. If you’re a swing trader, let us know the currency pair you love most. Maybe your favorite pair will be the next pair of our readers!