Tables of Major, Minor and Exotic Currency Pairs

Tables of Major, Minor and Exotic Currency Pairs

The three tables below contain this author’s attempt to create a major forex pairs list, a minor forex pairs list, and an exotic forex pairs list. Taken together, they fairly accurately reflect the main forex pairs currently traded in today’s foreign exchange market.

Best Currency Pairs to Trade

Those new to trading forex often ask seasoned traders what the best forex pairs to trade are. A wise trader will explain that the best answer will often differ depending on an individual’s preferred trading style, the strength of the trading opportunity they have identified, and the time frame that they expect to hold the position for.
For example, a trader using a scalping strategy that has a short average trade duration will usually be looking for the best dealing spreads and the ability to trade significant amounts very quickly. Such traders will probably want to confine their trading activities to highly liquid top traded currency pairs like EUR/USD and USD/JPY. These popular forex pairs feature the tightest dealing spreads and their markets can handle very large amounts due to the significant number of well capitalized market makers and other participants.
On the other end of the trading spectrum, a longer term trend trader who sees an excellent directional opportunity arising in an exotic currency pair might do very well by investing some of their account capital in taking a trade in that pair consistent with their market view. Nevertheless, due to the illiquidity of many of the exotic currency pair markets, they may want to keep their position sizes modest and be prepared to trade on wider dealing spreads when entering and exiting their positions.
Those trading primarily for time frames somewhere in between those two extremes may find trading opportunities arising in any of the most traded currencies listed in the tables above offered by their forex broker or market maker. Still, if the width of the dealing spread might significantly impact the overall profitability of their trade, then they may wish to focus their trading activities on the forex majors, rather than on the minor or exotic currency pairs.

Popular Nicknames for the Major Currency Pairs and Currencies

Professional forex traders tend to be rather colorful individuals, and they often refer to the major currencies and currency pairs by their traditional nicknames. Novice traders should be prepared to understand this important forex market jargon before speaking to a dealer or market maker working at a financial institution.
First of all, the U.S. Dollar currency is often referred to by forex traders as the “Greenback” or “Buck” in the singular, and they add an “s” at the end of the nickname to form plurals. Also, the Pound Sterling is usually called the “Quid” by dealers, which is a plural term, while the Swiss Franc is known as the “Swiss”, which is also plural.
The European Union’s Euro currency does not have any particularly common nicknames so is just called the “Euro”. Its plural form could be “Euro” or “Euros” since it is a relatively recent currency name, and its plural has apparently not yet been standardized. Similarly, the Japanese Yen is referred to simply as the “Yen”, which is a plural term. The Canadian, Australian and New Zealand Dollars are commonly called the “Loonie”, “Aussie” and “Kiwi”, which are all plural nicknames.
In addition, the four top traded currency pairs have the following common nicknames:

• EUR/USD – typically just called the “Euro”, although apparently some traders use “Fiber” or “Fibre” to refer to this pair instead depending on their country of origin.
• USD/JPY – usually simply referred to as the “Yen”, but some dealers might use more colorful Japanese cultural references like “Sushi” or “Ninja” to refer to this pair.
• GBP/USD – this pair is often called “Cable” in many forex dealing rooms.
• USD/CHF – this pair generally called the “Swissy” among forex traders.

The less actively traded commodity currencies have these traditional nicknames:

• USD/CAD – popularly nicknamed the “Loonie” but also sometimes referred to as “Funds”.
• AUD/USD – usually referred to as the “Aussie”.
• NZD/USD – generally referred to as the “Kiwi”.

With respect to the major crosses, EUR/JPY and GBP/JPY are sometimes called “Yuppy” and “Guppy” respectively, while the EUR/GBP pair has acquired “Chunnel” as a popular nickname.
Being aware of and learning these currency pair nicknames will help novice traders better understand a conversation with professional traders about the forex market, and it will also help clarify forex market commentaries written by professional traders that often use such jargon.

Download the short printable PDF version summarizing the key points of this lesson….Click Here to Download

Trading a New Currency Pair

Although many currency traders prefer the high liquidity, tight spreads and simplicity of trading just the six major currency pairs — or even just a subset of them — a time comes in most forex traders careers when they would like to start trading a new currency pair.
After first checking to see whether your current broker or dealer makes markets in the new currency pair, the next step to take will involve performing some fundamental analysis on the two countries that issue the currencies that make up the new pair of interest.  Since currencies are something like the stock of their issuing nations or regions, it will probably help to read about the issuer’s politics and economy and to determine what goods it imports and exports.
Also watch out for fixed exchange rate policies that tend to reduce volatility or cause large exchange rate gaps when they are changed. Review each country’s central bank policies on interest rates and currency management carefully, and find out the names of key monetary, fiscal and political policymakers. Be very wary of risky geopolitical events like wars, disasters or elections.
Once the above information has been collected — and if you are still interested in trading that new pair after your research — it would then make sense to look for an economic calendar to review each country’s historical economic data and see what events are coming up that may affect each currency’s relative value. 
In addition, performing a review of long term historical exchange rate charts and implied volatility can help you identify any unusual risks involved in trading the currency pair you might not otherwise have noticed. Trying out your trading strategy for the new pair in a demo account might also make sense so that you can check out the dealing spreads, execution speed, stop loss order slippage, and intraday exchange rate behavior.
Once you have done your homework, you should then be able to make a better informed decision about whether trading the new currency pair seems right for you.

How To Do Multi Timeframe Trading In 3 Simple Steps

Multi Timeframe Trading (or Multiple Timeframe Trading as it is sometimes called) is a trading technique that every forex trader should be familiar with.
Now, I’m not saying this to change your trading technique or style and push multi-timeframe trading down your throat…no.
I say this so that you can study multi-time frame trading concept and look at its advantages and see if it can be applied to whatever trading system or technique you are using at the moment and see if it can be a good fit (or not).
So you you really need to keep an open mind about this multi time frame trading thing.

Is Multi Time Frame Trading Difficult?

Now, for most beginner forex traders, the concept of multi-timeframe trading may seem difficult.
But I promise you, if you just spend a bit more time reading and understanding the concepts and the multi-timeframe trading techniques and  the multi time frame trading methods that I’m going to show you here, you will be graduating from the multi timeframe trading university with a degree very soon.
Sounds good?

Ok, lets get started, cowboy!

What Is Multi Time Trame Trading?

What is multi time frame trading?  Multi timeframe trading is a trading technique that uses more than one trading timeframe to analyse a trading setup and then take a trade based on that.
Multi Timeframe traders do not use one single timeframe to trade, they use a handful of them to do their technical analysis and then eventually will settle on one trading timeframe to execute an order.
In most cases, the trading timeframe that they settle in to enter a buy or sell order is the timeframe where the buy or sell signal is found from analyzing the different timeframes.

What Is The Purpose Of Multi Timeframe Trading?

For me, there are 2 main reasons why I use multi-timeframe trading:

1. to get better trade entries
2. to managing a trade

I will explain both of these reasons in a bit more detail below.

How To Use Multi Timeframe Trading To Get Better Trade Entries

The biggest reason for multi-time frame trading is for getting better trade entries.
Which simply means you want to get into a trade at a better price level at a suitable timeframe.
Why is that? Well, let me explain it further with a tale of two traders, Jack and Jill.

A Tale of Two Traders, Jack And Jill

Imagine Trader Jack is watching the daily timeframe and he sees a diagonal price channel forming on USDCHF and now price is heading down to the lower trendline in the channel.
The only timeframe Jack trades is the daily timeframe, nothing else and so he see a bullish pin bar form after touching the lower trendline and he places his buy stop order 2 pips above the high of that daily candlestick:

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Next day, as anticipated, price breaks the high of the that bullish pin bar and continues to move up. Ten days later, Jack’s profit target is hit.  He risks 120 pips and make twice that in 10 days.

But 10 days prior, Trader Jill was also watching this same trading setup unfold and she took a buy trade on the same trading setup that Jack took…
Her profit target level was that same as that of Trader Jack and it got hit too.
But here’s the thing: she did not enter at the same price as Jack did.
Here’s what Jill did:

• she saw the trading setup happening in the daily timeframe so when price was near the lower channel trendline she switched to the 1 hour and was waiting to see if she could see a price bounce up (bullish reversal candlestick) from that trendline
• and sure enough a pin bar formed…that was her signal to buy.
• Her stop loss was only 25 pips (Trader Jack’s was 120 pips)
• When her profit target was hit, she made more 320 pips (Jack made 240 pips)

Now lets compare the two traders:

• both traders entered the same trading setup at different buy prices.
• both aimed for the same price level but because of their different entry prices, they made different profits.
• Trader Jack’s Risk:Reward was 1:2
• But Trader Jill’s risk:reward was 1:13!!!

And that my friends lies the power of multi timeframe trading.

How To Use Multi Timeframe Trading  To Manage A Trade

Another use of multi timeframe trading is that fact that you can use it to manage your trades.
How?
Well, lets look again at trader Jill for example. She entered the buy trade on the 1 hour timeframe.
But remember, this trade she entered was based on the daily timeframe.
Now, Jill decided that she wants to manage he trade using the daily timeframe and not the 1 hour timeframe where she entered the buy trade in.
Jill’s plan of action was to use the watch the daily timeframe lows and whichever candlestick made a lower low, she was going to move her stop loss and place a trailing stop 2 pips below the low of that daily candlestick.
If price moved 2 pips past the low of that candlestick, she would be stopped out in her trade hopefully with some hundreds of pips in profit.
Based on her trailing stop strategy, she only had to move her stop loss only once before price hit her profit target:

Or another way would be to enter a trade based on the larger timeframe, for example the daily and manage your trade by switching to the smaller timeframe, like the 4 hour or the 1 hour timeframes:

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3 Simple Steps To Trading Multi Timeframe Trading Setups

The secret to multi timeframe trading is to think outside the box a little bit.
Here’s a 3 step by step process I use when I’m doing my analysis for multi time frame trading:

Step 1: Start Checking The Larger Timeframes

This is the first step when I do multi-timeframe trading.
I use the top down approach and start with the larger time frames first and checking them to see if there’s any potential trading setups forming.
I consider the monthly, weekly and the daily as my larger timeframes and I start from the Monthly timeframe and work my way down to the daily timeframe.
Why is that?
Well because of these two simple reasons:

• the monthly timeframe gives me a better and bigger picture of what is happening. It is like an eagle that is flying high up and can see wide and far. And from there I work my way down to the weekly then to the daily time frames.
• the monthly timeframe can hide trading setups that form in the weekly, daily, and anything below the daily timeframe.
• Similarly, the weekly timeframe can hide good trading setups that are forming in the daily, 4 hr and the 1 hour timeframes.

That’s why when you do a top down technical analysis, you don’t miss a thing!

Trading setups I’m looking for in the larger timeframe:

• is price near a major support or resistance level?
• is price near a major support turned resistance or resistance turned support level?
• is price near a fibonacci level and does it coincide with other support or resistance levels, trend lines, channels?
• is price forming a channel and where is the price now in relation to the channel trendlines, is it close or not?
• is price heading towards a major trendline?
• Are there any chart patterns forming in the larger timeframes, for example, the head and shoulder pattern?

These are the questions in my head when I’m looking at the charts.
Now here are some things you should know about when doing multi time frame technical analysis:

• larger timeframes can hide trading setups that that form in smaller timeframes.

Step 2: Note The Trading Setups That Will Happen During The Week

This step 2 is important as it allows you to only focus on trading setups that will have the potential to form during the week.
Draw your lines, trendlines, channels, fibonacci retracement levels and wait to see if price will reach them.
Any other trading setups that is way off, don’t bother for now. Only focus on trading setups that will most likely happen within the trading week or trading setups that can happen in 1 to 2 days.
You need to make a note of them and constantly monitor them because sometimes, price can travel fast and reach them and you can miss those amazing trading setups is you are not watching and monitoring them.

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Step 3: Trading Time: Switch To A Smaller Timeframe!

Finally the time has come!
Price has reached that trendline (or support level or fib level etc) that you’ve drawn in the monthly timeframe.
What I do is I immediately switch to the 4 hour charts to check out the price action in there and also switch to the 1 hour timeframe.
If it is a sell trade setup, I’m looking for bearish candlesticks as my sell trade entry confirmation.
If it is a bullish trade setup, I’m looking for bullish reversal candlesticks for my  buy trade entry confirmation.
Here are important tips:

• sometimes, the 1 hour will not give you reliable reversal candlestick patterns to give you the the confidence to make a trade.
• when such situations happens, I do not trade in the 1 hour but switch to the 4 hour timeframe and wait there to see if I can get a reliable reversal candlestick pattern in that timeframe to buy or sell.

There will be times when I’d be a bit aggressive and switch down the 5 miniture timeframe and trade from there as well If I have too.

Advantages Of Multi Time Frame Trading

• gives you better trade entries
• better trade entries also gives you better or excellent risk:reward ratio which in simple terms means you risk less for the potential to earn more, even 13 times what you risked.
• gives you a better perspective of what can happen, where prices are most likely to reverse etc because of the top down technical analysis approach used and this gets you out of trouble because you know that you should not be looking to sell if price is now near a very major support level or you should not think about buying when price is now near a major resistance level in the monthly timeframe.
• allows you to take trades that have potential to move hundreds to thousands of pips in profits
• suitable for trend and swing traders

Disadvantages of Multi Time Frame Trading

• many new traders may find it difficult initially.
• choosing what smaller  timeframe you should stick to for your trade entries
• forget multi timeframe trading is you are a forex scalper at heart! This is not good for you.

So there you have it, the 3 steps on how to do multi-timeframe trading. If you have any questions about multi-timeframe trading, make a comment below. I’d be happy to answer any questions you may have.
Or by the way, I always end my posts with a request for you to share, like, tweet, share these articles and I’m not going to stop on this one. Please share! Thanks

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