Timing when day trading can be everything
In Stock markets typically more volatility (or price activity)
occurs at market opening and closings
When it comes to Forex (foreign exchange market), the world’s
most traded market, unlike other financial markets, there is no centralized
marketplace, currencies trade over the counter in whatever market is open at
that time, where time becomes of more importance and key to get better trading
opportunities. There are four major forex trading sessions, which are Sydney, Tokyo, London and New
York sessions
Forex market is traded 24 hours a day, 5 days a week across by banks,
institutions and individual traders worldwide, but that doesn’t mean it’s
always active the entire day. It may be very difficult time trying to make
money when the market doesn’t move at all. The busiest times with highest
trading volume occurs during the overlap of the London and New York trading
sessions, because U.S. dollar (USD) and the Euro (EUR) are the two most popular
currencies traded. Typically most of the trading activity for a specific
currency pair will occur when the trading sessions of the individual currencies
overlap. For example, Australian Dollar (AUD) and Japanese Yen (JPY) will
experience a higher trading volume when both Sydney and Tokyo sessions are open
There is one influence that impacts Forex matkets and should not be forgotten :
the release of the significant news and reports. When a major announcement is
made regarding economic data, currency can lose or gain value within a matter
of seconds
best indicator for option trading: Cryptocurrency markets,
on the other hand remain open 24/7, even during
public holidays
Until 2021, the Asian impact was so significant in Cryptocurrency markets but
recent reasearch reports shows that those patterns have changed and the
correlation with the U.S. trading hours is becoming a clear evolving trend.
Unlike any other market Crypto doesn’t rest on weekends, there’s a drop-off in
participation and yet algorithmic trading bots and market makers (or liquidity
providers) can create a high volume of activity. Never trust the weekend’ is a
good thing to remind yourself
One more factor that needs to be taken into accout is Blockchain transaction
fees, which are responsive to network congestion and can change dramatically
from one hour to the next
In general, Cryptocurrency markets are highly volatile, which means that the
price of a coin can change dramatically over a short time period in either
direction
best indicator for option trading: The Bottom Line
The more traders trading, the higher the trading volume, and the more active
the market. The more active the market, the higher the liquidity (availability
of counterparties at any given time to exit or enter a trade), hence the
tighter the spreads (the difference between ask and bid price) and the less
slippage (the difference between the expected fill price and the actual fill
price) - in a nutshell, yield to many good trading opportunities and better
order execution (a process of filling the requested buy or sell order)
The best time to trade is when the market is the most active and therefore has
the largest trading volume, trading all day long will not only deplete a
trader's reserves quickly, but it can burn out even the most persistent trader.
Knowing when the markets are more active will give traders peace of mind, that
opportunities are not slipping away when they take their eyes off the markets
or need to get a few hours of sleep
Day Trading Booster is designed ;
- to assist in determining market peak times, the times where better trading opportunities may arise
- to assist in determining the probable trading opportunities
- to help traders create their own strategies. An example strategy of when to trade or not is presented below
For Forex markets specifically includes
- Opening channel of Asian session, Europien session or both
- Opening price, opening range (5m or 15m) and day (session) range of the major trading center sessions, including Frankfurt
- A tabular view of the major forex markets oppening/closing hours, with a countdown timer
- A graphical presentation of typically traded volume and various forext markets oppening/clossing events (not only the major markets but many other around the world)
- Day (Session) Open, 5m, 15m or 1h Opening Range
- Day (Session) Referance Levels, based on Average True
Range (ATR) or Previous Day (Session) Range (PH - PL)
- Week and Month Open
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