1.0 Brief Introduction
Dukascopy offers a wide range of tools, for free, that can help you tremendously and take your trading to the next level.
This article will help you to identify which tools may increase your strategy's success rate, especially an intraday trending strategy.
Since Forex is an over the counter market, which means there is no centralized market (like the NASDAQ or NYSE); there is no official info about volume or interest. Therefore, we'll have to estimate the liquidity by the spread and the price ticks. We'll assume that the bigger the broker is, higher is the correlation to the overall aggregated data (and Dukascopy is quite big).
2.0 Market requirements for an intraday trending strategy
If you're using an intraday trending strategy then you'll be needing a market that moves, otherwise you'll be stuck in a range and buy/sell into fake trades. By identifying if a market is moving and is liquid, you'll be able to avoid dead markets and keep out of bad trades.
With that in mind, we'll be looking at the following data in order to scan and choose an appropriate pair to trade:
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