Which currency pair........

JTrader · May 31, 2007

Hi

if you had to name one currency pair that most closely resembles GBP/USD, in terms of main trading hours & size of moves, Which currency pair would this be?

EUR/USD meets the criteria in terms of main trading hours, and also the direction of moves, but EURUSD moves are considerably smaller than those of GBP/USD.

Thanks a lot.

wasp · May 31, 2007

JTrader said:
Hi

if you had to name one currency pair that most closely resembles GBP/USD, in terms of main trading hours & size of moves, Which currency pair would this be?

EUR/USD meets the criteria in terms of main trading hours, and also the direction of moves, but EURUSD moves are considerably smaller than those of GBP/USD.

Thanks a lot.

GBP/HKD... the resemblance is uncanny although the times are most likely different.

Crap Buddist · May 31, 2007

JTrader said:
Hi

if you had to name one currency pair that most closely resembles GBP/USD, in terms of main trading hours & size of moves, Which currency pair would this be?

EUR/USD meets the criteria in terms of main trading hours, and also the direction of moves, but EURUSD moves are considerably smaller than those of GBP/USD.

Thanks a lot.

Divide the currency ATR , by the spread. Cable might appear to be ahead of EURUSD for instance but, the euro might pip it on that equation.
euro usd 1.2 spread cable typically 2.5

lets say euro is atr of 60 = 50 x spread
cable 110 / 2.5 = 44 ,
beat the spread and get a % of a typical ; ATR what % ? 50 i reckon is excellent.

over 100%. taking the ****.

25% average/good

whats everyone else think ?

JTrader · May 31, 2007

Yes the resemblance is very uncanny, with GBPHKD. CMC quote a 7 pip spread.

fibonelli · May 31, 2007

EUR/CHF - Apparently CHF can be a leading indicator of USD and is a popular cross amongst prof traders wishing to trade CHF.
USD/YEN - Consistent trending characteristics
GBP/USD - Inconsistent trending characteristics

JTrader · Jun 5, 2007

GammaJammer said:
If you tap that back through, that's a pretty amazing implied spread in cable (obviously the actual number depends on what you assume for usd/hkd but do the maths).......

GJ

Agreed. There'd be no point trading GBPHKD with a 7 pip spread, when you can trade GBPUSD with a 3 pip spread - when these two currencies move almost identically, and with very similar size pip movements.
The same can be said about other pairs - i.e. if two currencies are very similar in terms of ADR & price movement, you'd go for the one/s wwith the narrowest spreads.

BTW - USD/HKD is very spiky, a bit like EUR/GBP. The chart looks like a millipede

.
How these could be traded successfully, i can't begin to imagine

.

hanzahar · Jun 21, 2007

fibonelli said:
EUR/CHF - Apparently CHF can be a leading indicator of USD and is a popular cross amongst prof traders wishing to trade CHF.
USD/YEN - Consistent trending characteristics
GBP/USD - Inconsistent trending characteristics

leading indicator?

for swissy?

fibonelli · Jun 21, 2007

hanzahar said:
leading indicator?

for swissy?

My source is http://www.gracecheng.com/forex_trading/54/My_Articles.html
The Trader's Journal - Volume 2, Issue 5 - July 2006

Rhody Trader · Jun 21, 2007

Crap Buddist said:
Divide the currency ATR , by the spread. Cable might appear to be ahead of EURUSD for instance but, the euro might pip it on that equation.
euro usd 1.2 spread cable typically 2.5

lets say euro is atr of 60 = 50 x spread
cable 110 / 2.5 = 44 ,
beat the spread and get a % of a typical ; ATR what % ? 50 i reckon is excellent.

over 100%. taking the ****.

25% average/good

whats everyone else think ?

Actually, ATR divided by price is probably a better comparative measure. It would give you a direct comparisson of average period ranges in % terms between pairs. This is what I've come to call Normalized ATR. There's an ATR article of mine on this site in which I discuss its calculation use, though not specifically in forex terms.

Which currency pair........

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