21.04.2019 Views

Trader Dale Volume Profile

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

What instruments to trade?<br />

I also need to mention that the costs of trading can fluctuate based on the instrument volatility.<br />

Generally speaking, the higher the volatility, the bigger the<br />

costs will be to trade the instrument (spreads mostly). You also<br />

need to be aware of the various instruments volatility in your<br />

trading strategy. This will require you to adjust your SL and PT<br />

accordingly to the volatility of the asset you are trading. Also,<br />

the strategy itself should be consistent with that currency pairs<br />

volatility and behavior. Some pairs are good for fast, aggressive<br />

trading, while still others are better for slower and calmer<br />

trades.<br />

Here is a Daily Range table (average from the last 10 weeks) of<br />

various currency pairs to give you some overall picture of their<br />

average volatility.<br />

In my trading, I prefer to avoid GBP pairs. If you look at the table,<br />

you can see that they are one of the most volatile. The GBP also<br />

tends to aggressively spike past major support and resistance<br />

zones, which doesn’t really suit my trading strategy as well as<br />

many of the others. For that reason, I usually avoid trading the British Pound.<br />

90

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!