Trader Dale Volume Profile
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What instruments to trade?<br />
USD/JPY<br />
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More volatile.<br />
Cheap to trade (mostly because of high liquidity).<br />
Very precise reactions to volume-based S/R (even though it is volatile).<br />
Capable of spikes and big crazy moves.<br />
Safe heaven currency (uncertainty in the markets -> people buy JPY).<br />
GBP/USD<br />
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Volatile.<br />
Moderately cheap to trade.<br />
Hard to predict. Sometimes reacts sooner to volume-based S/R zones, sometimes too late,<br />
sometimes never.<br />
Usually quite “dead” during the Asian session.<br />
Good for catching trends (you need to be ready to quit fast though).<br />
Quick spike moves.<br />
Massive reactions to UK CPI news and BREXIT related news, not so much on GBP Rate<br />
Decision news (for now).<br />
If I had to choose two of these major pairs to trade with my <strong>Volume</strong> <strong>Profile</strong> trading strategy, I<br />
would choose EUR/USD and USD/JPY. The reason I would select those two is that they are both<br />
cheap to trade, have good reactions to my volume-based S/R levels, and there is a very low<br />
correlation between these two pairs. Additionally, I can also use the same pip size for my take<br />
profit and Stop-loss which makes trade execution much easier.<br />
This is just the way I personally see it. In the end, I think that it is best for you to do your own<br />
research and make your own opinion on what currencies are the best to trade. I will be happy if<br />
this helps you find someplace to start from and if it gives you an idea what things to consider<br />
when looking for the ideal set of instruments to trade.<br />
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