The second component of what makes a good pair to trade is the spread. Having a 100 pip ATR doesn’t do you a lot of good if the spread is 50. Does not usually happen but you get the idea. However traders would like to see a ratio of the spread to the daily ATR of about 1:50 or more. What this means is that if a particular currency pair has a spread of two pips, You would like to see at least a 100 pip ATR. Often this is very easy to achieve, but in our current market it doesn't happen too often.
Best Forex Pairs
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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