USDJPY and EURAUD Price Reaction after U.S PMI news 21 Aug 2025

 

EURGBP Price Reaction After U.K CPI News 20 Aug 2025

 

NZDUSD NZDCAD And NZDJPY Price Reaction 20 Aug 2025

 The RBNZ annonuced lower the OCR to 3%. Here are NZDUSD, NZDCAD and NZDJPY price reaction to this news released, using Dolly system on m5 chart.

 

 

The Importance Of Creating A Forex Demo Account

 

Creating a demo trading account prior to setting up a live online forex trading account will almost certainly pave the way for your forex trading success. A demo trading account offers numerous advantages to the forex beginners, including learning the fundamentals of your selected trading platform, familiarizing yourself with the services provided by your selected forex broker, testing various manual trading system/strategies, testing various expert adviser for optimization result and establishing your trading strengths and weaknesses.

Although forex trading seems like an exciting and unique way to make a sizeable investment, it is also an easy way to lose money fast if approached with the wrong attitude and intentions. This is why setting up a demo trading account may be the most sensible step you can take, prior to getting started with the real thing.

Why Begin With a Demo Account?

Before depositing real funds with a forex broker, it is a wise idea to set up a demo trading account. This is because, although demo trading and live forex trading are two entirely different things, beginning with a demo account means that you can learn the ropes in a comfortable and safe setting, without any additional pressure or threat of losing funds.

Online forex trading is an exciting investment strategy, but it poses a number of risks to any trader. By first learning the ground rules of trading on a demo trading account, you will be in an excellent position to:


- Study the ins and outs of your chosen forex trading platform
- Establish some fail-safe trading strategies/EAs
- Learn what currency or commodity pairs suit your trading needs
- Take advantage of educational resources and other facilities provided by your selected forex brokers

The Importance of an Effective Risk Management Strategy

Although it is easy and convenient to copy someone else’s trading style, it is absolutely essential to ensure that your own trading style sustains your personal and financial needs. This is why the risk management strategies that you choose to follow must wholeheartedly suit your personal and financial needs.

Setting up a forex demo account gives you the opportunity to practice various risk management strategies, risk-free. This means that you can implement various forex trading strategies and understand what works best for you.

Finally, as with any investment strategy, patience is key. Trading forex through a demo account will give you the opportunity to repeatedly practice forex trading, and, although you may only be winning fake money, at least you will have the chance to learn what suits your needs, where your weaknesses lie and how you can best achieve online forex trading success.

Spread To Pip Potential : Which Pairs Are Worth Day Trading?

 

Spreads play a significant factor in profitable forex trading. When we compare to the average spread to the average daily movement many interesting issues arise. Namely, some pairs are more advantageous to trade than others. Secondly, retail spreads are much harder to overcome in short-term trading than some may anticipate. Third, a "larger" spread does not necessarily mean the pair is not as good for day trading when compared to some lower spread alternatives. Same goes for a "smaller" spread - it does not mean it is better to trade than a larger spread alternative.

Establishing a Base Line
To understand what we are dealing with, and which pairs are more suited to day trading, a base line is needed. For this the spread is converted to a percentage of the daily range. This allows us to compare spreads versus what the maximum pip potential is for a day trade in that particular pair. While the numbers below reflect the values in existence at a particular period of time, the test can be applied at any time to see which currency pair is offering the best value in terms of its spread to daily pip potential. The test can also be used to cover longer or shorter periods of time. These are the daily values and approximate spreads (will vary from broker to broker) as of April 7, 2010. As daily average movements change so will the percentage that the spread represents of the daily movement. A change in the spread will also affect the percentage. Please note that in the percentage calculation the spread has been deducted from the daily average range. This is to reflect that retail customers cannot buy at the lowest bid price of the day shown on their charts.

# EUR/USD
Daily Average Range (12):105
Spread: 3
Spread as a percentage of maximum pip potential: 3/102= 2.94%

# USD/JPY
Daily Average Range (12):80
Spread: 3
Spread as a percentage of maximum pip potential: 3/77= 3.90%

# GBP/USD
Daily Average Range (12):128
Spread: 4
Spread as a percentage of maximum pip potential: 4/124= 3.23%

# EUR/JPY
Daily Average Range (12):121
Spread: 4
Spread as a percentage of maximum pip potential: 4/117= 3.42%

# USD/CAD
Daily Average Range (12):66
Spread: 4
Spread as a percentage of maximum pip potential: 4/62= 6.45%

# USD/CHF
Daily Average Range (12):98
Spread: 4
Spread as a percentage of maximum pip potential: 4/94= 4.26%

# GBP/JPY
Daily Average Range (12):151
Spread: 6
Spread as a percentage of maximum pip potential: 6/145= 4.14%

Which Pairs to Trade

When the spread is placed into percentage terms of the daily average move, it can be seen that the spread can be quite significant and have a large impact on day-trading strategies. This is often overlooked by traders who feel they are trading for free since there is no commission.

If a trader is actively day trading and focusing on a certain pair, making trades each day, it is most likely they will trade pairs that have the lowest spread as a percentage of maximum pip potential. The EUR/USD and GBP/USD exhibit the best ratio from the pairs analyzed above. The EUR/JPY also ranks high among the pairs examined. It should be noted that even though the GBP/USD and EUR/JPY have a four-pip spread they out rank the USD/JPY which commonly has a three pip spread.

In the case of the USD/CAD, which also has a four-pip spread, it was one of the worst pairs to day trade with the spread accounting for a significant portion of the daily average range. Pairs such as these are better suited to longer term moves, where the spread becomes less significant the further the pair moves.

Adding Some Realism

The above calculations assumed that the daily range is capturable, and this is highly unlikely. Based simply on chance and based on the average daily range of the EUR/USD, there is far less than a 1% chance of picking the high and low. Despite what people may think of their trading abilities, even a seasoned day trader won't fair much better in being able to capture an entire day's range - and they don't have to.

Therefore, some realism needs to be added to our calculation, accounting for the fact that picking the exact high and low is extremely unlikely. Assuming that a trader is unlikely to exit/enter in the top 10% of the average daily range, and is unlikely to exit /enter in the bottom 10% of the average daily range, this means that trader has 80% of the available range available to them. Entering and exiting within this area is more realistic than being able to enter right in the area of a daily high or low.

Using 80% of the average daily range in the calculation provides the following values for the currency pairs. These numbers paint a portrait that the spread is very significant.

* EUR/USD
Spread as a percentage of possible (80%) pip potential: 3/81.6= 3.68%

* USD/JPY
Spread as a percentage of maximum pip potential: 3/61.6= 4.87%

* GBP/USD
Spread as a percentage of possible (80%) pip potential: 4/99.2= 4.03%

* EUR/JPY
Spread as a percentage of possible (80%) pip potential: 4/93.6= 4.27%

* USD/CAD
Spread as a percentage of possible (80%) pip potential: 4/49.6= 8.06%

* USD/CHF
Spread as a percentage of possible (80%) pip potential: 4/75.2= 5.32%

* GBP/JPY
Spread as a percentage of possible (80%) pip potential: 6/116= 5.17%

With the exception of the EUR/USD, which is just under, 4%+ of the daily range is eaten up by the spread. In some pairs the spread is a significant portion of the daily range when factoring for the likely possibly that the trader will not be able to accurately pick entries/exits within 10% of the high and low which establish the daily range. (To learn more, see Forex Currencies: The EUR/USD.)

Final Thoughts

Traders need to be aware that the spread represents a significant portion of the daily average range in many pairs. When factoring likely entry and exit prices the spread becomes even more significant. Traders, especially those trading on short time frames, can monitor daily average movements to verify if trading during low volatility times presents enough profit potential to realistically make active trading (with a spread) worthwhile. Based on the data the EUR/USD and the GBP/USD have the lowest spread-to-movement ratio, although traders must update the figures at regular intervals to see which pairs are worth trading relative to their spread and which ones are not. Statistics will change over time, and during times of great volatility the spread becomes less significant. It is important to track figures and understand when it is worth trading and when it isn't.

Dolly Trading System - Latest Dolly Graphics v18 indicator

 The Dolly trading system was created back in 2006 from a group of forex trading community. It was originally based on a commercial trading system, which was popular during that time, WSS system. So a clone of the commercial system was created for free to use. CJA was the coder for Dolly graphics Indicator since 2007. The current latest version is v18 which you may download it from mql5 forum website.

 Dolly graphics_v18 indicator 

 

Basically this  indicator is trade mainly on the breakout of forex instruments. The comment section on the left top corner of the chart gives a suggestion of pending buy/sell order, with stoploss and target profit level. Additionally there are also a suggestion of bullish and bearish correction with entry, stoploss and target placement. This system mainly trade on lower timeframe such as M5, M15 and M30. The indicator are highly customizable according to you need and trading style. 

Inside the indicator there is a indicator instruction available if you need more information about it. 

Take a look at below screenshot from the indicator instruction:

 

This system can be trade on any currency pairs, and also Metals, stocks CFD and indices. All you need to do is customise the level of buy/sell area and target level.

Below was the example of most recent USDJPY m15 chart with Dolly Graphics v18 indicator. 

 

 

Major Currency pairs price reaction after US PPI and Unemployment Claim news 14 Aug 2025

 Here are EURUSD, GBPUSD and USDJPY price reaction after US Core PPI and Unemployment Claim news realesed.