Folks! Though Forex market is open for 24 hours, it is not necessary that all the pairs trend all the time. Generally trending occurs in the market for 20 percent of time approximately and remaining time is for consolidation i.e pairs would move sideways. There are different trading techniques to trend both scenarios. Here I have given you a kind of cheat sheet when currency pairs are most likely enter trends. Ofcors, it depends on lot of other factors also like News timings, Market sentiment, Major Political events, Natural disasters to name a few. successsful trader keeps track of all these things and remain well updated. Below i have mentioned the days in front of currency pairs when they are most likely to undergo trend.
EUR/CHF - Wednesday, Thursday, Friday
EUR/AUD - Tuesday, Wednesday, Thursday
EUR/GBP - Tuesday
EUR/JPY - Wednesday
EUR/USD - Wednesday, Thursday, Friday
GBP/CHF - Wednesday, Thursday
GBP/JPY - Wednesday, Thursday
GBP/USD - Thursday
USD/CAD - Tuesday, Friday
USD/CHF - Thursday, Friday
USD/JPY - Wednesday, Thursday
AUD/JPY - Tuesday, Wednesday, Thursday
AUD/USD - Tuesday, Wednesday
NZD/USD - Monday, Tuesday
CHF/JPY - Thursday
This does not mean that apart from these days pairs won't trend, but these are most likely days, based on the study of past performances of these pairs. You should definitely look for nice trending setups on these pairs on these days.
Successful traders also identify the timing during each day to trade each pair. Normally there is lot of volatility during London session of Forex market. Second most session dear to traders is US session. The time when London & US session overlaps creates lot of volatility, volume in the market. These are good trading hours. But always remember, towards the end of any session, trends tend to reverse as traders begin to bag their profits. As soon as you see around 20 pips of opposite move on your position, try to exit & be satisfied with your share of profit. Happytrading!
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