Forex trading is available 24 hours from Monday to Saturday, except Sunday is close. The best time to trade is GMT 2300 to 0100 hours due to low volatility as most major market in London and New York are closed and, Japan and Sydney are just opening.Forex market opens on Sunday 10pm GMT and close on Friday 10pm GMT London market opens at 8am and close at 5pm New York market opens at 1pm and close at 10pm Tokyo market opens at midnight and close at 9am. Sydney market opens at 1am and close at 10am
As you can see there is some gaps at different time of the day, and since major market is traded in United State Dollar and Europe Euro and Great Britain Pound. The least hour trading which does not have any open market to push the price is during 10 pm and 8am. Since the opening of Tokyo Japan Yen and Sydney Aussie is midnight and 1am, it will have very little effect on major currency.
Trades during 11pm to 1am GMT
I trade scalping and breakout during this 2 hours and on EUR and USD related currency pair.
For scalping, I using get 5 to 10 pips profit at very short interval of 15 minutes or less. My trade setup would be taking the moving average of last 3 hours and predict the next 3 hours the price go up or comes down. Many trades are highly successful and small profits can be achieve using a 30 or 50 stoploss strategy.I use breakout strategy if I do not have a distinct trend to trade the scalping above. By looking at the 3 hour chart (at 15 minutes interval bar), I would establish a support and resistance line, either converging or diverging. At midnight, it no price crosses either support nor resistance line, I will place a Buy stop and Sell limit at +10 pips and -10 pips for resistance and support level. With 10 pips profit and 30 pips stop loss. The reason is the momentum is building up in the currency if it is not trending for last 4 hours. This is visually true before the opening of London and New York market.
My personal favourite is Europe Euro / United States Dollar (EUR/USD), Europe Euro / Great Britain Pound (EUR/GBP) and Great Britain Pound / United States Dollar (GBPUSD). There is many other more currency pairs major and cross which I will scan the chart for available trade setup but most of the time I would go for the above mention 3 currency pairs.
Another important trade setup I used to execute is to check the 24 hours chart at midnight to see the yesterday trend of the currency. If am trading scalping and the daily bar is open and close towards my trending direction, it double confirm my trades. And for resistance and support, I will look at the thickness of the open and close bar. The difference between the support and resistance have to be more then the daily bar thickness, then is a double confirm for me to trade the Buy and sell Order. (with +10 pips and -10 pips respectively). Of course once either trade trigger, you have to cancel the other one. If reach 1am and none of the 2 trade is triggered, please cancel both. Wait and see until the next 11pm.
Don’t worry if you miss the time to trade scalping or support and resistance, as you will always have another change the next day and every other normal trading days.
source http://www.amazines.com/article_detail.cfm/4460221?articleid=4460221.
Forex Trading Secrets reveals a trading system for the Euro Currency
futures and forex markets that trades in the after hours from 5-11 pm
CST. Our secrets for using stochastics show how to improve the
performance while three new trading systems are developed and fully
disclosed. We use the Tradestation platform to develop this strategy
and show our approach for researching and developing a trading system.
The final strategy is developed throughout the book with an improved
average trade profit and equity curve. -Three fully disclosed trading
systems -Rule isolation -Time diversity -Stochastic trading
secrets -After hours trading from 5-11 pm -and
more............ Capstone Trading Systems is owned by David Bean
who has been trading the financial markets since 1995. He started with
stocks but quickly moved to futures and forex in 1996 and began
developing automated trading systems in 1997. More information as
well as my Tradestation files for the strategy that can be downloaded
are on our website at http://www.capstonetradingsystems.com
Forex Trading Secrets: A Trading System Revealed Click here for more amazon customer reviews and rating...
An accessible guide to trading the fast-moving foreign exchange market
The foreign exchange market, or forex, was once dominated by global
banks, hedge funds, and multinational corporations, but that has all
changed with Internet technology and the advent of online forex brokers.
Now, hundreds of thousands of traders and investors around the world
can participate in this profitable field.
Written by forex expert Kathy Lien, The Little Book of Currency Trading
will show you how to effectively invest and trade in today's biggest
market. Page by page, she describes the multitude of opportunities
possible in the forex market, from short-term price swings to long-term
trends, and details practical products that can help you achieve
success, such as currency-based ETFs.
- Explains the forces that drive currencies and provides strategies to profit from them
- Reveals how you can use various currencies to reduce risk and take advantage of global trends
- Examines financial vehicles that can help you make money without having to monitor the market every day
The Little Book of Currency Trading opens the world of currency trading and investing to anyone interested in entering this dynamic arena.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex (Little Books. Big Profits) Click here for more amazon customer reviews and rating...
A practical guide to trading the foreign exchange market
The Ed Ponsi Forex Playbook
offers a visual approach to learning specific trading strategies and
identifying profitable trading opportunities in the Forex arena. Page by
page, it skillfully describes strategies for long-term trading, swing
trading, and day trading in a clear, easy-to-understand manner.
Written by the author of the hugely successful Forex Patterns and Probabilities, The Ed Ponsi Forex Playbook
takes the entire concept of Forex education to a new level. The author
raises the bar with this ambitious work, presenting fresh new strategies
and concepts. Ponsi uses clever analogies and comparisons to make his
explanations crystal clear.
- With Ponsi as your "coach", the book employs sports analogies to show you, his players, the way to victory on the Forex playing field
- Strips away the mystery, showing exactly how successful Forex traders make money
- Explains complex financial concepts in ways that the average person can understand
- Provides not only useful information, but actionable information to the Forex trader
The
foreign exchange market is the most actively traded market in the
world, and Ed Ponsi is world-renowned as one of the foremost educators
in this field. With The Ed Ponsi Forex Playbook as your guide, you'll learn how to take advantage of the many opportunities found in the Forex arena.
The Ed Ponsi Forex Playbook: Strategies and Trade Set-Ups (Wiley Trading) Click here for more amazon customer reviews and rating...
No comments:
Post a Comment