How to Identify the Best Currency Pairs Using Tools on the MT5 Trading Platform
Every day trillion dollars are traded, foreign exchange market, or foreign currency, is the largest and most fluid financial market in the world. However, trades are not enough to succeed in foreign currency; You also need to place the right trades on the right pairs. Because of this, it is necessary to select the best currency pairs, and trading platforms such as the metatrader 5 (MT5) provide strong equipment to help traders to help their decisions.
This post will discuss how to use the built-in features of the MT5 trading platform, which is to find the best currency pairs.
Why Choosing the Right Currency Pair Matters
Each pair of currencies has different symptoms; Some are stable, some are unstable, and some react strongly to news events. You can increase your winning rate and control risk by selecting the best currency pairs for your trading style. For example, high-stagnant couples such as GBP/JPY can be preferred by scalpers.
Trending couples like EUR/USD can be a focus of swing traders. When it comes to economic release, news traders may prefer USD/CAD or GBP/USD. With the help of the MT5 trading platform, traders can efficiently monitor these pairs, test and keep.
Step 1: Use the Market Watch Window to Scan the Forex Market
You can see a real -time photo of value changes in the currency pairs in the market watch window of MT5.
Here is how to implement it:
- Use the visual menu or Ctrl+M to launch a market watch.
- To see each equipment available, right-click inside the window and choose “Show all”.
- Pay attention to instability, prices and spread.
Advice: If you want tight spreads and more liquidity, focus on the major currency pairs (EUR/USD, USD/JPY, and GBP/USD). This is especially important if you are now starting.
Step 2: Use MT5 Technical Indicators to Analyze Trends
Technical indicators are lazy in MT5, which can help you determine which couples are trending or range at this time.
Specific indicators include:
- Moving Average (MA): The couple are trending and have a different direction. Use the relative power index (RSI) to identify overbought or oversold conditions.
- MACD: Monitor potential inverted and speed.
- Bollinger band: Evaluate potential breakout setup and volatility.
To bring them into practice:
- Open a chart for the pair you want.
- After selecting your tool, click on Insert → Indicator.
- Check the pair movements at different time periods (daily or M15 to H4).
Look for couples with a different trend, stable instability, and signals that line up over time.
Step 3: Test Strategies with MT5’s Strategy Tester
The strategy examiner, which allows you to backtest expert advisors (EAS) or indicators against historical data, is a notable feature of the MT5 trading platform.
- See → Strategy to determine which currency pairs are the best for your plan.
- Choose a custom indicator or an EA.
- Select a time period and a currency pair.
- Play tests and check matrices such as winning, profit factor and drawdowns.
You can find out which pair compares them and perform the best under your trading rules (for example, EUR/USD vs. AUD/JPY).
Step 4: Track Economic News That Moves Currency Pairs
The currency couples that are susceptible to changes in the economy are often best. To keep traders informed, MT5 has an integrated economic calendar.
To get it:
- Click on the tool → calendar to see if the lower panel is capable in MT5.
- Determine high impact news releases using the calendar.
- Sorted by nation or currency (eg, USD, GBP).
For opportunities with greater instability, the time trades around the release. For short -term strategies, the FOMC statement during the bank of England meetings or USD/JPY trading around GBP/USD, for example, may result in sharp movements.
Step 5: Monitor Correlations with Other Pairs
The currency correlations by some traders are used to select the couples that are complemented or unrelated. For example, there is a positive relationship between EUR/USD and GBP/USD.
USD/CHF often moves in the opposite direction of EUR/USD.
- You can monitor those who are equal by arranging several charts on the MT5 interface and looking for patterns.
- Avoiding more than-stricken positions reduces the possibility that a single, sudden step can cause damage to the entire portfolio.
Final Thoughts: Pair Your Strategy with the Right Tools
The MT5 trading platform expert is a complete suite for foreign exchange analysis, not just a charting interface. The inherent features of MT5 help you to track basic things when searching the market, testing strategies, implementing technical analysis and searching for the best currency pairs to trade.
Here is a summary of what should be done:
- To find active, low spread pairs, use market watches.
- Use technical indicators to gain a deeper understanding of your chart.
- To verify the pair’s performance, run the backtest in the strategy examiner.
- See for the instability trigger on the economic calendar.
- Keep an eye on the correlations to increase the diversification of your trades.
The best currency pairs eventually rely on your attitude, level of experience and risk tolerance; however, the MT5 trading platform gives you all the resources that you need to identify your profit.
