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Tradingsessions

Trading sessions liquidity huntLiquidity serves as the driving force behind all markets. The fundamental driver of any price shift involves the creation and aggregation of liquidity, with the objective of accumulating or distributing positions among market participants. Accumulating positions necessitates counter liquidity to fulfill orders and initiate positions in the desired volume. Liquidity is therefore established within specific price ranges, with the intention of later manipulating it toward the accumulation of counter liquidity, ultimately achieving the goals of order fulfillment. The bulk of liquidity, including stop orders and liquidations, tends to congregate around technical and psychological support/resistance levels, which can be observed retrospectively through the analysis of clusters and volume profiles. Engaging in trading based on a one-time reaction, characterized by a substantial cluster forming during the breach of a particular price level, can lead to premature entry and potential losses, driven by inaccurate expectations of either a price breakthrough or deviation from calculated reference points - An approach that leans towards caution, involving the selection of a trading setup once liquidity has been obtained from the previous trading session's highs/lows within the prevailing trend. This process is carried out while ensuring alignment between higher and lower timeframes. - The primary objective is capital preservation, which is accomplished by minimizing risk to the range of 0.5-1% per trade and adjusting open positions to the break-even point after confirming the trend's structure. - The strategy opts for an entry technique that boasts a high mathematical expectation of success. - Fresh positions are initiated exclusively during periods of elevated market volatility, particularly during the optimal trade time (OTT) sessions in London and New York. The focus is directed towards trading setups featuring risk:reward ratios ranging from 1:3 to 1:10. Given the dynamics of market participants accumulating and distributing their positions during trading sessions, it's reasonable to assert that liquidity forms outside the fluctuations of these sessions. This liquidity is typified by stop orders and position liquidation within the scope of a micro-trend. Consequently, it can be inferred that the commencement of the subsequent session will involve manipulation. The aim of this manipulation is to interact with such liquidity to amass positions in the opposite direction. Coupled with heightened volatility during the session's commencement, this provides opportunities to initiate positions before the impending price movement. The primary criterion for entering a position will be the disruption of the existing structure following the capture of liquidity. Additional factors might encompass corrective momentum, liquidity in the opposing direction acting as an attraction for distributing accumulated positions during manipulation, and the formation of trading ranges with deviations, among others. Entry into a position occurs on a lower time frame, emanating from an untested supply/demand zone. An additional aspect to consider is the presence of local liquidity before reaching the entry point.
BITSTAMP:BTCUSDEducation
by Crypto4light
🕔Trading Sessions🕔 What are the Operating Hours of the Forex Market? The forex market is operational 24 hours a day, five days a week, excluding weekends. It commences trading at 5:00 PM EST on Sunday and concludes at 5:00 PM EST on Friday, resulting in a total of 120 trading hours, with a 48-hour break from Friday to Sunday (EST). The forex market caters to global traders, accommodating their needs irrespective of their time zone. The market is divided into distinct "forex sessions" based on global time zones, which experience varying levels of volume and volatility. Trading hours are subject to variation depending on daylight savings and holiday schedules. During daylight savings periods, regions utilizing this system will observe a one-hour offset in the winter, which reverts to normal in the summer months. 🕔 What Is a Trading Session? A trading session is a period of time that matches the primary daytime trading hours for a given locale. This phrase will refer to different hours, depending on the markets and locations being discussed. Generally a single day of business in the local financial market, from that market’s opening bell to its closing bell, is the trading session that the individual investor or trader will reference. The markets for forex, futures, stocks, and bonds all have different characteristics that define their respective trading sessions for a given day, and the primary trading hours naturally differ from one country to another due to contrasting time zones. Trading session hours can vary by asset class and country. The regular trading session for U.S. stocks starts at 9:30 a.m. and ends at 4:00 p.m. Eastern Time (ET) on weekdays (holidays excepted). These times are primarily driven by the working hours of the New York Stock Exchange (NYSE), which closes early at 1:00 p.m. ET on several occasions throughout the year associated with holidays. The regular weekday trading session for the U.S. bond market is 8:00 a.m. to 5:00 p.m. ET.3 Futures markets, meanwhile, have different trading hours, depending upon the exchange and the type of commodity being traded. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
☀️MAKING SENSE OF FOREX TRADING SESSIONS🌝 ⭐️The Basics The forex market is open 24 hours a day during the weekdays which allows traders to potentially trade all day and all night.Knowing the forex market’s operating hours is essential for a trader. You need to know when the forex market opens and closes as well as the four main trading sessions. ⭐️Forex Trading Sessions Just because you can trade the market any time of the day or night doesn't necessarily mean that you should. The best time to trade is when the market is active with lots of forex traders opening and closing positions, which creates a large volume of trades. The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. • Sydney is open from 9:00 pm to 6:00 am UTC • Tokyo is open from 12:00 am to 9:00 am UTC • London is open from 7:00 am to 4:00 pm UTC • New York is open from 1:00 pm to 10:00 pm UTC ⭐️Forex Trading Volume You can make money trading when the market moves up, and you can make money when the market moves down. But you will have a very difficult time trying to make money when the market doesn't move at all. In order for the market to move, lots of trades need to occur. And this is why you should focus your energy during specific trading sessions. The forex trading sessions are named after major financial centers and are loosely based on the local “work day” of traders working in those cities.The more traders…trading, the higher the trading volume, and the more active the market. The more active the market, the tighter the spreads you'll get and the less slippage you'll experience. In a nutshell, you'll get better order execution. ⭐️When is the best time to trade forex? During the weekdays, there’s always at least one forex trading session open although there are periods of downtime when the market is really quiet and trading volume is low or “thin”. You usually want to avoid trading when only one trading session is open and instead, wait for trading sessions to overlap. When two major financial centers are open, the number of traders actively buying and selling a given currency greatly increases. The highest trading volume occurs during the overlap of the London and New York trading sessions. More than 50% of trading volume occurs at these two financial centers. ⭐️Currency specific sessions The best time for you to trade forex will depend on which currency pair you’re looking to trade. Most of the trading activity for a specific currency pair will occur when the trading sessions of the individual currencies overlap. For example, AUD/JPY will experience a higher trading volume when both Sydney and Tokyo sessions are open. And EUR/USD will experience a higher trading volume when both London and New York sessions are open. Thanks for reading bro, you are the best☺️ ✅Gimme a like and the Gods of Trading will favour you this week👍 Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
1
The importance of trading sessions and volatility (educational)Forex trading sessions are important as are stock market trading sessions. I'm sharing some of my knowledge and experience, mainly for new traders. See forex sessions by timezone (this does not promote any service or broker). The sessions are important because various groups of traders have their own preferences for particular currencies in respective time zones. At the opening of a session there can be increased volatility - sometimes leading to gaps up or gaps down. This can be catastrophic for traders with small accounts and tight stop-losses. Those trading on live accounts may wish to use guaranteed stop-losses, if their brokers provide that - as some form of defence. A standard stop-loss near the start and end of sessions, is likely to suffer badly due to what is known as slippage i.e. price does not close where the stop-loss is set. So a trader can lose far more than they expected because of the gap up or down. An alternative some for some traders is to close trades (if favourable). just before the close of a session. But many brokers increase spreads about 30 minutes or so near the start of end of a session. What happens in stock markets may affect forex markets. It is a two-way dynamic relationship. For example, there is an inverse relationship between US Dollar and Wall Street, similar between EURO and the DAX (GER30), and again similar between the Yen and the Japan225. Stock markets favour weak currencies (generally), in respective countries. It is therefore important to find out the times of trading sessions for stock markets. For UK traders (from my experience) peak volatility on Wall Street is usually around 07:00AM, 09:00AM, 14:30PM, 18:00PM and 22:00PM (+/- one hour depending on daylight saving time). Around 01:00AM the Japanese stock markets come alive with many surprises. What that means is that one can expect volatility on the forex markets too around those times. This does not mean that volatility is to be avoided i.e. it just needs to be risk-managed. The information above is shared experience and may not be 100% accurate. Traders on live accounts need to check trading session times for greater accuracy. Trading sessions add another layer of complexity to risk management. Profitability in the long term may depend on attention to the details.
BITSTAMP:BTCUSDEducation
by Captain_Walker