Hello,
I'm thinking about trending pairs. As you look on the EUR/USD Daily Chart you can see that there is a very high volatility from time to time. There are bars which are totally ruining any trend, by overlapping a bigh area of the recent move.
I think that the news are very important by making those super-long bars. I did a trade a few days ago (on daily chart) and I was stopped out, because a news event created a long bar running straight through my stop.
Well, my strategy is ok, but those spikes aren't.
Now, I'm searching for currency pairs which are making more gently moves (no horrible spikes). I did some work in order to find out, which pairs are better to trade. GPB/USD is better than EUR/USD, but does also make big moves, affected by news. Then I worked out the thesis: "Cross pairs are better to trade, because they move more gently and in this way they are more manageable than major pairs".
What do you think which pairs are better to trade? I mostly read books about Futures and I saw many charts, showing nice movements, as we can see it in the Dow. Those Forex charts are a way more topsyturvy for me (the best example for me is USDJPY, because nearly every trade runs into the right direction but a little bit later the trend completely turns around - no problem with this strategy in the Dow).
