Any GBP/USD Pro's Here?

[Sledge]

I trade GBP/USD exclusively and wondered if their are any folks here that tend to gravitate to this particular currency pair.

I find it to be a much needed "old soul" in the Currency Market- Trading Yen is for the brave and thrill seeking, EUR seems to be the flavor of the day currency as every noob in the Forex Trading world knows it is where "the action is" CAD seems boring to most (not enough excitement) and the list goes on and on.

I gravitated towards GBP for it's consistancy. Just wondered if anyone here tends to trade it quite often or specialize in it?
Sledge

[torero]

I used to trade GBPUSD more often but eventually got attracted to JPY based pairs. Not sure why other than the fact that it moves more than the others. I mainly trade GBPJPY, EURJPY, and USDJPY.

[cowpip]

	Quote:	Sledge
	I gravitated towards GBP for it's consistancy. Just wondered if anyone here tends to trade it quite often or specialize in it? Sledge

For a few years, particularly when I first started trading forex, I used to trade it exclusively as well. But I have learned that it's wise to keep your eye on more than just one pair (if you're able to). If your strat can handle the behavior of other pairs, you'll see far more signals if you monitor other pairs. I trade almost entirely on price patterns and very simple indicators such as fibs and known prior support and resistance points, so my strat is easily transferable between pairs.

Cable is a reliable old friend, but there are other pairs almost equally reliable. I have found that most of the yen cross-pairs are reliable as well and adhere to the technicals quite well. My personal favorite is eur/jpy (I call it the "yuppy"). It returns the goods day in and day out, on an intraday basis as well as on a longer-term basis. And as Torero noted, so does geppy (gbp/jpy) - although your risk tolerance needs to be a tad higher for that pair given the higher spreads and the larger moves.

[Sledge]

Well I am working diligently on mastering VSA- which would indeed lead me to be able to trade ANY currency or anything in the world for that matter so I'm sure I will get back to diversifying- I actually took a JPY/USD trade today for the first time in probably 6 months because I saw a good set-up this morning.

Cable, EUR and, CHF are rangebound right now- guess I needed some excitement as my Cable is in range-bound frustration hell for the moment.
Sledge

[torero]

One problem with VSA is finding volume in forex to use it. As Anna-Marie mentioned, volume is not complete, it's based on price ticks, not pure volume as we define it.

[cowpip]

	Quote:	torero
	One problem with VSA is finding volume in forex to use it. As Anna-Marie mentioned, volume is not complete, it's based on price ticks, not pure volume as we define it.

That's right. I wouldn't trust volume indicators further than I could throw them, particularly if you're a user of retail forex. Good point, Torero.

[torero]

Right now, I only trade on price action with S/R, no problem without volume. I use volume with index futures though. Somehow, forex just seems to be ok without volume since practically everyone is without volume info, so an exemplary level playing field I must say.

[cowpip]

Yep, use the tools that are best suited to the product you are working. The decentralized nature of forex prevents the computation of a true level of volume. Even price comparison's between brokers vary (and with some, they can vary quite substantially - I've seen variations of over 10 pips in some cases). But those are usually associated with less reliable retail shops.

We probably shouldn't be too quick to dismiss Sledge's strategy of using a volume indicator on forex if it's working for him. You use what works, and if you can find an edge using a volume indicator, then good for you! I consider many (if not most) of the indicators out there lagging in nature and therefore they don't fit in well with my own personal strategy. But for others, they form a fundamental basis and have led to success.

In forex, as in any other trading activity, you won't be successful until you can find your own "edge." If mastering VSA accomplishes that for some people, so be it. VSA can be correlated to enhanced volume in forex, although it can also give false signals. If someone can differentiate between the two, then that may formulate the basis of an edge. And that's all it takes to be profitable.

[Sledge]

BUT You can use your brokers TICK Volume because it is relative!
Say at any moment their are 100,000 contracts trading hands.
Even though your broker is not handling all 100,000 contracts- they will be handling a certain percentage- consistantly.

It is the same as taking a random sample in Marketing- if you don't have any specific demographic and you just want to know what the country is thinking on a topic (opinion poll.) You can take a random sample of 1000 people you see on the street. When you get the percentage of their answers- those percentages will be a good indicator of what the country as a whole would say- without having to ask every American their opinion.

So in essence one brokers tick volume will be on par with the market as a whole.

Sledge

[cowpip]

	Quote:	Sledge
	So in essence one brokers tick volume will be on par with the market as a whole.

That is unproven and is subject to considerable debate. That argument presumes that each broker's trading occurs in volume waves that are comparable to the waves of other brokers (and in particular, the volumes injected by the big dogs). I don't think that is necessarily true. It may be (I can't deny that it is possible), but it seems unlikely.

That would be similar to saying that the volume of shopping at Target will be similar to the volume of shopping at Walmart, J.C. Penny or Bon-Ton Stores. I don't think you can say that. Volume in forex varies from broker to broker. Brokers that handle smart money might see volumes that peak at times that are opposite to volumes that occur in the dumber-money retail markets.

So the way I see it, assuming there is a correlation in volumes is very possibly an incorrect assumption.