There are opportunities across the board in forex, there are many different pairs that you can trade and keeping an eye on a range of them will help you capitalise on the best opportunities that are available, but you can’t look at all of them all of the time, what you need is a short list.
How To Create A Forex Watch List.
Generally what you are looking for is a forex currency pair that is approaching support or resistance, and to do this and capitalise on the best moves in forex it’s best to use the daily timeframe and maybe the 4hr time frame. It’s these higher timeframes that produce the best opportunities, the smaller timeframes are harder to trade and give you too many alerts and they will be for smaller more unpredictable moves. Take for example how the price moves from one big number to another, by big number I mean for every 100 PIPS, like 1.3600 and 1.3700, if you look at the price action on a 1hr chart for a 100 PIP move between the big numbers you will often see 3 or more levels of support and resistance, but on the 4hr you are likely to see only the one and that will be at the big numbers. Mark out the longer term support and resistance and then the shorter term and differentiate between them, the longer term levels will provide better opportunities and you’ll be able to balance your risk to opportunities more effectively. Don’t select exotic pairs to trade, stick to the more mainstream of them, there are plenty to be getting on with, use pairs with at least one of the following currencies in them, USD, EUR, and GBP and then only mix with the other main currencies like the AUD, JPY and maybe the CAD. The more exotic the pairs the less they respect support resistance and the more unpredictable they are.
Forex Watch List Alerts.
There are many ways you can do this, you could do it manually and check all the charts periodically which is a good way of doing it, since by doing this you have a quick glimpse at the charts and are able to make any further notes. The other way of course is to get an indicator to do it, so it sounds an alert when a level is hit, it is easy to find one of the for Metatrader 4 free to download from the internet, and they can usually be customised so that you can set them to alert within different distances from the price level that you are interested in.