Article

43/73
Ranking
I assume the bigger part of the us uses automated trading based on pure technical indicators. But in the 24 hours fx market it is important to not loose focus on how the worldwide liquidity flow pattern changes within a day and from monday to friday.The 3 global marketsThe biggest liquidity suppliers in the fx market are the European markets, New York and a somehow fragmented market in Asia consisting of different banking centers in Japan, Australia, Hong-Kong and Singapore.  There is a significant overlap of trading times between the US and european markets. Within the asian market, the above mentioned banking centers compete against each other but there is a time with much less liquidity at the late asian times and before the european markets open and also after the US market closes.The global liquidity flow has influence on the market volatility. I collected the average pips of the EURUSD moves during each market hour and the following diagram shows up: The data collected here starts at 29 of march this year, the date after Europe and the US both switched to daylight saving time. Sure the pattern is slightly different during winter and mid of march, when US and europe use differ…
Read article
Translate to English Show original
schnitzel avatar

interesting - yes. Even today in this "panic" market (8th of august), the strong downtrend stopped at 14:00 GMT

Dieselfx avatar
Dieselfx 9 Aug.

good article, maybe you will highlight more the movement in the closing and the opening of the session...and pls readable charts

schnitzel avatar

Dieselfx thanks for your feedback. I hope to have time for looking at those session open/close times more in detail. Maybe the statistics I collected so far can help someone to optimize their trading approach.

ritesh avatar
ritesh 26 Aug.

yes, it is quite informative to know how much market can move...it really helps to decide if we should stay in or get out of the position. +1 for ya buddy.

ritesh avatar
ritesh 28 Aug.

check out my articles too at http://www.dukascopy.com/fxcomm/fx-article-contest/?action=blog&user=ritesh

orto leave comments
34/73
Ranking
Trading big figures in the fx market can be very interesting. By big figures I mean those round numbers, divisible by 100 pips, like today on 3rd of august  the level of 1.4300 for EURUSD.  Basically 2 common behaviors can be found around those areas: AttractorsAs a lot of traders place there stop buy or stop loss orders at big figures, high attention is payed to those levels by the big players in the market, who may have an advantage to move the market in this direction. Often a movement can be seen like the morning of 3rd of august, when the EURUSD fluctuated around lower levels during the hours before european market opening hours and then suddenly at around 9 GMT, when the traders put enough liquidity into the market the price jumps sharply to the "big figure" level:Forex dealers activitiesWhen looking more into detail, a second pattern can be detected: when the price jumps to this big figure level it usually comes back 5 to 10 pips below this level immediately afterwards. I read about this behavior first in the book with the lurid title "beat the forex dealer" from Augustin Silvani. He explained it with activities initiated by forex dealers who just want to catch the stop loss…
Read article
Translate to English Show original
traderingo avatar
traderingo 10 Aug.

at the end is it not clear how to trade .

Am ende versteht man nicht was du meinst, also wie man das traden soll? .Das nennt man auch glaube ich stop-chasing und kommt auch ofters in wichtigen support und resistance vor, wo der preis bis 50 pips uber den resisitacne level geht und dann wieder zuruck kommt.

schnitzel avatar
schnitzel 14 Aug.

Hi traderingo - sorry if my description might not have been clear enough. Basically there are 2 ways to trade this: one to "ride the wave" in the direction of the big figure. The other is to enter the trade when the big figure is reached and take profit when the prices go back in the opposite direction. Sure it is up to you to fine tune the exact levels for entering the market, which depends on the currency pair and overall market trend situation.

ritesh avatar
ritesh 26 Aug.

in big unregulated markets these techniques do work. never tried though, everyone's tastes are different. you're welcome to taste my pipping strategy schnit. +1

ritesh avatar
ritesh 28 Aug.

check out my articles too at http://www.dukascopy.com/fxcomm/fx-article-contest/?action=blog&user=ritesh

LinnuxFX avatar
LinnuxFX 30 Aug.

Clear and readable article, good luck for contest ...

orto leave comments