The Christmas holiday period is usually a time when it is a lot harder to make money from trading because the volumes drop off quite substantially and the price moves are generally somewhat unpredictable.
Thankfully there is still plenty of time to make some decent returns before Christmas. So in this article I want to discuss which pairs (and which markets) are potentially very profitable right now.
Ideally you want to be trading those markets that are fairly volatile with large price moves every day, and the best way to obtain this information is to look at the average true range (as indicated by the ATR indicator) for each of these markets:
AUD/USD – 62
EUR/CHF – 47
EUR/GBP – 49
EUR/USD – 77
GBP/USD – 79
GBP/JPY – 112
USD/CAD – 75
USD/CHF – 63
USD/JPY – 57
FTSE 100 – 77
DOW JONES – 167
NASDAQ – 52
S&P 500 – 21
BRENT CRUDE – 132
CRUDE OIL – 135
As you can see, the major forex pairs are not actually that volatile at the moment compared to previous months, with the EUR/USD and the GBP/USD, for example, having average daily trading ranges of 77 and 79 points respectively.
The only pair that generally trades within a range of 100 points or more per day at the moment is the GBP/JPY pair, which is always a fairly good pair to trade.
It is the other markets that are the big daily price movers at the moment, which is unsurprising given the current global events.
The FTSE and the Dow Jones, for example, are both very volatile at the moment, with many days seeing some large price swings.
Finally, the oil markets are not as volatile as they have been, but still generally trade within a range of about 130-135 points if you are looking for a profitable market to trade on a short-term basis.