Part VI. When should we trade?
Pipruit: So, as I suspect, we finally, have known all necessary stuff about trading time. May be we should turn to trading directly?
Commander in Pips: Hold your horses, son…
Pipruit: More studying? Noooo!!!
Commander in Pips: Just one final step remains – what about suitability for trading of a particular trading days?
Pipruit: Well, are they might be different?
Commander in Pips: Of course!
Pipruit: In this case, I think, I should be patient for a little while longer…
The same situation is similar on Forex, but it is more typical for price action during the week instead of during the day, because Forex is 24/5 market.
Pipruit: And what should I do then? Do not trade until will see the “power of professionals”? Is it dangerous to trade until that becomes visible?
Today we will take a look at weekly activity.
Ok, here is what I’m talking about – just look in the table:
Pair | Sunday | Monday | Tuesday | Wednesday | Thurdsay | Friday |
---|---|---|---|---|---|---|
EUR/USD | 67 | 112 | 143 | 133 | 148 | 146 |
GBP/USD | 74 | 152 | 175 | 156 | 168 | 180 |
USD/JPY | 45 | 63 | 87 | 94 | 123 | 101 |
AUD/USD | 57 | 81 | 115 | 98 | 117 | 113 |
NZD/USD | 26 | 85 | 94 | 84 | 99 | 96 |
USD/CAD | 44 | 96 | 113 | 109 | 123 | 126 |
USD/CHF | 53 | 87 | 122 | 105 | 104 | 114 |
EUR/JPY | 22 | 135 | 181 | 162 | 228 | 202 |
GBP/JPY | 105 | 163 | 219 | 178 | 273 | 238 |
EUR/GBP | 35 | 72 | 79 | 80 | 76 | 90 |
EUR/CHF | 36 | 56 | 61 | 69 | 91 | 75 |
Pipruit: Well, it’s absolutely clear, why there is so shallow trading range on Sunday, but, wow, so significant difference in activity between Monday and the middle of the week.
Commander in Pips: That’s right. Also take a note that Friday’s price action is also greater that on Monday and even then on some other days of the week. So as on stock market, when professionals are active till the end of the day, as Forex professionals active till the end of the week. At the same time, we’ve already talked that trading session on Friday gradually fades out from New York’s lunch time until 17:00-18:00 EST and the market could turn to anemic conditions after 12:00-13:00 EST on Friday.
Pipruit: So what should I do then? For me each session looks attractive – Tokyo, as you’ve said could provides us with range trading opportunities or breakouts, London and NY with nice movements and huge liquidity. How can I get advantages all of them?
Pipruit: But how I will accomplish that, if, in fact, I will not have any rest at all?
So, let’s make a small conclusion about the timing of trading:
Reasonable times for trading:
- Crossing of different trading sessions is particularly suitable for trading, especially London and New York trading time overlapping;
- The European trading session itself, because it holds about 30-35% of overall daily transaction;
- Additional attention should be paid Europe and US morning time, because of macro data and news releases.
- The middle of the week shows greater activity than the beginning of the week, because professionals start gradually to pick up trading steam.
Unreasonable – better to stay flat:
- Weekend and Holidays – have you nothing better to do? Rest is must.
- On Friday in general, or at least in the second part of NY day (after 12:00 EST). First, because activity starts to fade during this period. Second, because market can turn to choppy price action and reverse previous trends. This could happen due to couple of reasons – massive close of positions before the weekend, and/or profit taking.
- During important macro data releases or Central banks minutes/statements – the market really can go mad and turn to Doom and Gloom in this period so, that you even can hear screams “Let me out!” if you just open your window during this time. Seriously speaking this is the time of whipsaw action and you could be stopped out (fixing a loss) if even you are right and market after some chop will continue move in your favor.
Pipruit: Well, this is really goldmine of insight. I even couldn’t assume that this information will be so important. Thanks, Commander.
Comments
Y
yusufikotun
12 years ago,
Registered user
Hello my Dear Moderators,
Forex Peace Army/Education has been very fantastic and educative. It is highly comendable. I appreciate.
Yusuf A.
Forex Peace Army/Education has been very fantastic and educative. It is highly comendable. I appreciate.
Yusuf A.
T
tmoses74
9 years ago,
Registered user
I concur!!
J
jlcvnetwork
8 years ago,
Registered user
I appreciate. very useful
D
dinhdustin
7 years ago,
Registered user
Awesome,Thank you so much for help us become a better trader
S
shaikmohd
7 years ago,
Registered user
Thank you...so much...must know..
S
SirTopham98
7 years ago,
Registered user
Wow really helpful information and presented in an entertaining manner.
Hamza Samiullah
7 years ago,
Registered user
Greate job
B
Bennyx
6 years ago,
Registered user
The style of writing is intriguing and entertaining.
D
deolanre
6 years ago,
Registered user
These info are absolutely Goldmine! Gradually developing great insight into the FOREX trading world!
Thanks a bunch
Thanks a bunch
G
gottacoin62
6 years ago,
Registered user
great advice! :)
P
paultejedor
5 years ago,
Registered user
thanks for sharing!
G
greenmason
5 years ago,
Registered user
very informative. Thumbs up!
O
One-fm
5 years ago,
Registered user
Thanks for this great piece, FPA.:)
A
Adan Martinez Rocha
3 years ago,
Registered user
Thank you for this very valuable resource!
Table of Contents
- Introduction
- FOREX - What is it ?
- Why FOREX?
- The structure of the FOREX market
- Trading sessions
- Where does the money come from in FOREX?
- Different types of market analysis
- Chart types
- Support and Resistance
-
Candlesticks – what are they?
- Part I. Candlesticks – what are they?
- Part II. How to interpret different candlesticks?
- Part III. Simple but fundamental and important patterns
- Part IV. Single Candlestick Patterns
- Part V. Double Deuce – dual candlestick patterns
- Part VI. Triple candlestick patterns
- Part VII - Summary: Japanese Candlesticks and Patterns Sheet
-
Mysterious Fibonacci
- Part I. Mysterious Fibonacci
- Part II. Fibonacci Retracement
- Part III. Advanced talks on Fibonacci Retracement
- Part IV. Sometimes Mr. Fibonacci could fail...really
- Part V. Combination of Fibonacci levels with other lines
- Part VI. Combination of Fibonacci levels with candle patterns
- Part VII. Fibonacci Extensions
- Part VIII. Advanced view on Fibonacci Extensions
- Part IX. Using Fibonacci for placing orders
- Part X. Fibonacci Summary
-
Introduction to Moving Averages
- Part I. Introduction to Moving Averages
- Part II. Simple Moving Average
- Part III. Exponential Moving Average
- Part IV. Which one is better – EMA or SMA?
- Part V. Using Moving Averages. Displaced MA
- Part VI. Trading moving averages crossover
- Part VII. Dynamic support and resistance
- Part VIII. Summary of Moving Averages
-
Bollinger Bands
- Part I. Bollinger Bands
- Part II. Moving Average Convergence Divergence - MACD
- Part III. Parabolic SAR - Stop And Reversal
- Part IV. Stochastic
- Part V. Relative Strength Index
- Part VI. Detrended Oscillator and Momentum Indicator
- Part VII. Average Directional Move Index – ADX
- Part VIII. Indicators: Tightening All Together
- Leading and Lagging Indicators
- Basic chart patterns
- Pivot points – description and calculation
- Elliot Wave Theory
- Intro to Harmonic Patterns
- Divergence Intro
- Harmonic Approach to Recognizing a Trend Day
- Intro to Breakouts and Fakeouts
- Again about Fundamental Analysis
- Cross Pair – What the Beast is That?
- Multiple Time Frame Intro
- Market Sentiment and COT report
- Dealing with the News
- Let's Start with Carry
- Let’s Meet with Dollar Index
- Intermarket Analysis - Commodities
- Trading Plan Framework – Common Thoughts
- A Bit More About Personality
- Mechanical Trading System Intro
- Tracking Your Performance
- Risk Management Framework
- A Bit More About Leverage
- Why Do We Need Stop-Loss Orders?
- Scaling of Position
- Intramarket Correlations
- Some Talk About Brokers
- Forex Scam - Money Managers
- Graduation!