GBPNZD is the most volatile currency pair with an average trading range of 198 PIP's per day. GBPNZD has held the number one spot in volatility since 2014. In preparing to trade this currency pair on the Daily Time Frame I go to a higher time frame to determine what the trading psychology has been. What I want to determine, is the current trading psychology continuing in which case I want to continue to trade in that direction or is trading psychology changing in which case I want to know what the current trading psychology is doing.
To get a hold on what trading psychology has done and what it is now doing I am going to start by looking at the yearly candles. This may seem extreme to the average retail trader but it is necessary to fully understand what the professional traders are doing. Following the analysis using the yearly candles, I will move to the Monthly candles to get a more detailed look at this long term trading psychology. Allow me to reiterate! The yearly candles will provide a big picture of trading psychology. Then the monthly candles will provide more detail of the big picture. Once I have a picture of the long term trading psychology I can move down to the daily candles which is the time frame I am going to trade.
My goal in analyzing this currency pair and in trading this currency pair is to show a lot of detail into how I analyze the markets and how I trade them. You will find this to be quite different from how retail traders make trading decisions.
Additionally, if you have any questions along the way I invite you to ask!
To get a hold on what trading psychology has done and what it is now doing I am going to start by looking at the yearly candles. This may seem extreme to the average retail trader but it is necessary to fully understand what the professional traders are doing. Following the analysis using the yearly candles, I will move to the Monthly candles to get a more detailed look at this long term trading psychology. Allow me to reiterate! The yearly candles will provide a big picture of trading psychology. Then the monthly candles will provide more detail of the big picture. Once I have a picture of the long term trading psychology I can move down to the daily candles which is the time frame I am going to trade.
My goal in analyzing this currency pair and in trading this currency pair is to show a lot of detail into how I analyze the markets and how I trade them. You will find this to be quite different from how retail traders make trading decisions.
Additionally, if you have any questions along the way I invite you to ask!