HOW IMPORTANT IS TIME IN THE FOREX MARKETS 💡⏰📊HELLO EVERYONE
HOPE EVERYONE IS DOING GOOD ITS MONDAY LOTS OF OPPORTUNITIES AHEAD.
JUST SOMETHING ON TIMING IN THE MARKERT
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Every chart in trading has two axis ie. TIME & PRICE.
The most ignored of this two axis is TIME, now how important is time in trading. Are there some periods during the day that are most volatile than others of cause we all know NEW-YORK session will definitely be more volatile than ASIA or even LONDON sometimes, we know news releases are highly volatile and sessions opens normally see most spikes.
If this is the case why is TIME so underrated in trading or less incorporated in trading.
If you are starting out your Journey in trading you most likely have already invested in patterns ,support & resistance and everything price in the market in excitement watching various economic calendars and trade voraciously on every release of data, viewing the markets 24 hours a day, five days a week. Understanding time will remove this edge to be on charts all day long worse even seeing things that are just not there preventing unnecessary loses.
Unlike Wall Street, which runs on regular business hours, the forex market runs on the normal business hours of four different parts of the world and their respective time zones, which means trading lasts all day and night.
But understanding where you are in this Business will limit a lot of errors and back testing with Time will give you a perception of when your trades take off and what are your High success rate sessions, if you are scalping what are your range bound sessions, what ever type of trader you are time is a crucial aspect in trading.
So according to investopedia When only one market is open, currency pairs tend to get locked in a tight pip spread of roughly 30 pips of movement. Two markets opening at once can easily see movement north of 70 pips, particularly when big news is released.
So understanding this will help in reaching targets timely and reduces anxiety of being range bound in red before your trade takes you out and goes in your direction 😀
Overlaps in Forex Trading Sessions
The most traded & most popular will have to be the U.S./London (8 am. to noon NY TIME): This is the heaviest overlap within the markets with More than 70% of all trades happening when these markets overlap because of moves seen within this markets.
The we have the Sydney/Tokyo (2 am to 4 am NY TIME): This time period is not as volatile as the U.S./London overlap, but it still offers a chance to trade in a period of higher pip fluctuation, and certain pairs tend to be volatile during this certainly especially the once aligned with the sessions, tends to also be great for scalpers as most are range bound during this sessions and scalps can dominate during this sessions without unforeseen spikes 😁
• Last but definitely not least London/Tokyo (3 am to 4 am NY time) This overlap sees the least amount of action of the three because of the time (most U.S.-based traders won't be awake at this time), and the one-hour overlap gives little opportunity to watch large pip changes occur.
But this is the sessions that creates some important key levels to plan the day and execution of trades so no session is less important than the other the out come of each sessions lies with us as traders
• The forex market runs on the normal business hours of four different parts of the world and their respective time zones.
• The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities.
• The Sydney/Tokyo markets overlap (2 a.m. to 4 a.m.) is not as volatile as the U.S./London overlap, but it still offers opportunities
Then we have news Releases that are also based on time, if your strategy is based on capitalizing on news releases you are most likely aware of time and its importance in once trading.
I don't want this to be long so basically what I am saying is you have two axis on a chart, why are you only looking at the price axis, time has to come into playing some how 🤔
Invest in time to limit wasting your time on the charts...
Hope you enjoy this
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REFEREMCES.
Investopedia
The Best Times to Trade the Forex Markets ARTICLE
Volutrades
Timing Is Everything: The Best Times to (and Not to) Trade Forex ARTICLE
ICT SMART MONEY CONCEPTS By THE PROP TRADER
ICT SMART MONEY CONCEPTS KILLZONES
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* Kindly follow your entry rules on entries & stops. |* Some of The idea's may be predictive yet are not financial advice or signals. | *Trading plans can change at anytime reactive to the market. | * Many stars must align with the plan before executing the trade, kindly follow your rules & RISK MANAGEMENT.
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| * ENTRY & SL -KINDLY FOLLOW YOUR RULES | * RISK-MANAGEMENT | *PERIOD - I TAKE MY TRADES ON A INTRA DAY SESSIONS BASIS THIS IS NOT FINACIAL ADVICE TO EXCECUTE ❤
LOVELY TRADING WEEK TO YOU!
