Best Time to Day Trade the EUR/USD Forex Pair

How I use Volatility to my advantage (UK US open, late US etc)

[Only applies to M30 and lower]
What is volatility?
Volatility is the degree of variation in price of a given asset on a defined timeframe. When price moves quickly, market volatility increases. When price consolidates, market volatility decreases (simple definition). It is like the speedometer in our cars.
I usually add an Average True Range (ATR) on my charts to gauge approximately market volatility or market nervousness. However, it is not necessary, when you look at a chart you are able to tell if price is spiking, trending or consolidating.
Volatility is part of any strategy. It gives an expectancy toward future price action. In general, when market volatility is low, we expect significant support and resistance levels to hold price in a range. And when market volatility is high, we expect price to break these levels.
Volatility patterns
Fortunately, in the Forex market, daily volatility is predictable. We tend to see volatility peaks around major markets openings, which are the New York Stock Exchange (NYSE), the London Stock Exchange (LSE) and the Japanese Exchange. At the late hours of these markets, volatility tends to decrease.
These fundamental patterns are the most exploitable patterns in the Forex market. Yes, at least more exploitable than deceitful technical signals you are looking for. And they happen almost every day. However, there are exceptions. For example, we do not expect volatility peak to happen when countries of these big markets are on bank holiday.
EURUSD hourly volatility
The chart above shows the 4-weeks hourly volatility for the EUUSD pair. It is the average in pip of the difference between the highest and the lowest price of each hour of the day, over four weeks. Each bar represents the average in hourly range over four weeks.
There are two major peaks corresponding to the LSE and the NYSE openings.
Since the EUUSD is the most traded pair, we consider its volatility as "market volatility". In fact, the hourly volatility chart of the other pairs gives approximately the same pattern.
USDCAD hourly volatility
These charts were taken in May 2016. Take a look at Mataf.net’s volatility tool and type four (for four weeks) in the entry box. You will see approximately this same pattern in hourly volatility, with the two major peaks (UK and US opens) and decreasing volatility starting from the mid-US session. (Currently the pattern is disturbed by the brexit monster volatility, it will become clear again within few weeks)
We also have decreased volatility during the Asian session when there is no major news release coming from the Reserve Bank of Australia (RBA) or the Bank Of Japan (BOJ).
Asian sessions
These charts tell us market volatility is predictable. This leads us to define two principles:
First Principle: Around major markets openings (active time), market volatility tends to surge. We expect to see range breakouts, spikes or rallies. It is the best time to trade breakouts i.e., buying new highs and selling new lows.
Second Principle: During the late hours of major markets sessions and when major markets are closed (quiet time), market volatility tends to decrease considerably. We expect to see trading range or congestion in price action. It is the best time to range-trade i.e., buying the lows and selling the highs.
principles
Any trading strategy or system has to adapt to these variations in volatility to perform over time. If you are struggling with a particular strategy, maybe you are ignoring these changes in volatility.
How volatility patterns can help in improving your trading?
One cannot apply a strategy any time and expect to be profitable. When we simulate an automated and intraday trading system over three months without time filtering, we will notice the system is only profitable at certain hours of the day. This simply reflects intraday volatility variations.
You have to determine if your trading strategy is a trend following method or a range trading one.
If your strategy is a trend following approach, you will want to only trade around major markets openings to maximize profits. Otherwise, you will tend to give back profits as price slows down in the mid-session and market volatility decrease.
If your strategy is a range trading or reversal approach, you will want to only trade during quiet market time and avoid trading around market openings or around news releases.
Less trades maximize profits. Most of my trading sessions last less than one hour.
I made a portable document of this.
submitted by alm_hd to Forex [link] [comments]

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Source: mataf.net Nov. 1, 2017 Ways to use Forex Volatility Stats. There are multiple ways to use forex volatility statistics. Some of those ways are discussed below. –Changes in volatility can be used to confirm changes in direction, or point to an acceleration of the trend. Sharp moves to me are more important than a meandering price which ... Mataf.net forex trade and forex volatility.source: forex news.powerful forex expert advisor on market.ransquawk news.iscrizione rapida.over the last 7 years of trading the fx market we have seen a huge range in.since i am trend trader, i tend to focus on higher volatility times,.in the fast moving world of currency markets, it is extremely important for new.scopri i benefici del forex ora. Forex Volatility The following table represent the currency's daily variation measured in Pip, in $ and in % with a size of contract at $ 100'000. You have to define the period to calculate the average of the volatility. This strong volatility is accompanied by a significant increase in the spread. It is for that reason that it is important to know the time of publication of significant statistics; a stop which is too tight is often fatal at those times. We supply the most complete timetable possible, indicating the estimated level of impact on rates and mentioning the currency concerned. Trading tools . Forex ... Volatility Is Relative. If you have ever traded in the Forex market or at least watched price movements from the sidelines, you might have noticed that the prices move non-linearly on the chart. There are times when the currency price stands still or moves within a very narrow range. In this case, we talk about the low volatility in the market. I generally trade the GBPUSD at high volatility times at EST 2 am and 6am. However it is always good to have info on the best times to trade the other pairs forex well. No person, institution, or mataf, including the Apiary Investment Fund, can guarantee a return on investment for volatility transactions. Neither the Unit Investment Fund nor ... Mataf.net. The hourly volatility chart shows how many pips the EUR/USD moves each hour of the day (times are in GMT). There is a significant increase in the amount of movement starting at 0700, which continues through to 2000. After this, movement each hour begins to taper off, so there are likely to be fewer big price moves day traders can ... Mataf Forex Review Forexticket Mataf Forex Volatility In Forex Market Beginner Questions Babypips Com Forex Forex Correlation Mataf Forexperu Es Confiable Useful Sites Mataf Net Quantum Trading Education Range Factor Forex The Forex Trading Manual The Rules Based Approach To Making Money Forexticket Volatility ! Currency Pairs Volatility Finmax Forex Pairs With Most Volatility Mataf Forex ... To check whether other times of the day have been showing unusually low—or high—volatility, look at volatility statistics on Mataf. Click on a currency pair for an updated chart. To see how many pips a forex pair is moving in a typical day, apply an average true range (ATR) indicator to a daily chart. If the ATR is set to 15, the ATR will ... Go to FOREX - Mataf.net-> TOOLS/CHARTS -> Forex volatility. The following table represent the currency's daily variation measured in Pip, in $ and in % with a size of contract at $100'000. You have to define the period to calculate the average of the volatility. It could be interesting to trade the pair which offer the best volatility. Chers, fx1-d. JohnCrawdford: I know that at this time of ...

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Finding Pairs to Trade and When to Trade Them

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