Forex Trading Strategy
When it comes to Forex trading strategy there are many different strategies that can be used during the trading day. One of the things to remember would be that the major amount of trading will take place during opening and closing of the major markets in the world of Forex. These events should be watched carefully for repeating patterns. These trading patterns and strategy can sometimes persist for weeks on end and are attributed to central banks that intervene and other such actions that take a long time to work them out. There are also gaps and spikes especially in the time frame of 30 minutes.
Applying this particular Forex trading strategy is vital if you follow the following times: If you are thinking about the London sessions you need to pay attention to the opening which is 3:00 am EST and 8:00 GMT or Greenwich Mean Time. This is one of the largest centers in the world and the markets close at 12:00 EST or 17:00 GMT. The market can be affected by other transactions such as gold and LIBOR. The pairs to watch are EUR/USD, USD/CHF and USD/ CAD. This has about 30 percent of the market so watch the opening and closing times carefully.
Here is another situation that may play into your Forex trading strategy and that is the American/New York Session. This starts at 8:00 EST and 13:00 GMT and will close at 5:00 PM or 22:00 GMT. Here is where most of the market gets it’s volatility from. Usually around the hours of 8:00 – 12:00 or 13:00 – 17:00 is the hot time when Euro traders are still active in the Forex market. The most common patterns here would be from EUR/USD, GBP/USD, USD/CAD and USD/CHF. Paying attention here would also help you to make some money if you can catch the trends that come from this hot time.
The third situation that will play possibly into your Forex trading strategy will be the Asian session which starts off at 7:00 PM EST or 12:00 GMT and stops at 4:00 AM EST or 21:00 GMT. This is where it gets a bit sticky and when the trends with GBP develop such as GBP/CHF and GBP/JPY. Currencies in Asia should also be watched carefully such as NZD/USD, AUD/USD, USD/JPY and all crosses with these pairs. This is where you can develop or put a strategy to very good use.