Currency Personalities
Some traders never figure out this simple and valuable fact: Different pairs and
crosses exhibit their own personalities. These personalities do change, but typically
only over a long period of time.
Personalities can be defined by the market environment factors of directional
movement, volatility, thickness, and rhythm.
Over a period of time trading you will find currency personalities that
agree with your style of trading—and personalities that do not. By keeping a
record of basic ME characteristics in your codex notebook you will learn which
are which.
I recommend a battery of five pairs and five crosses. As you trade, you will
certainly find other markets that appeal to you. Be sure to have a good sense of
their volatility before trading them. Watch a market for 30 days before ever
trading in it. Get a fine-tuned sense of its personality.
Some traders never figure out this simple and valuable fact: Different pairs and
crosses exhibit their own personalities. These personalities do change, but typically
only over a long period of time.
Personalities can be defined by the market environment factors of directional
movement, volatility, thickness, and rhythm.
Over a period of time trading you will find currency personalities that
agree with your style of trading—and personalities that do not. By keeping a
record of basic ME characteristics in your codex notebook you will learn which
are which.
I recommend a battery of five pairs and five crosses. As you trade, you will
certainly find other markets that appeal to you. Be sure to have a good sense of
their volatility before trading them. Watch a market for 30 days before ever
trading in it. Get a fine-tuned sense of its personality.
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