The foreign exchange trading market can be traded 24 hours a day, and various markets around the world are opened in order of time zones. However, the changes in market conditions often vary in different markets.
The foreign exchange trading market can be traded 24 hours a day, and various markets around the world open in order of time zones. However, the changes in market conditions often vary in different markets. Below, the editor will introduce the characteristics of market trends in different time periods.
The market from 5 to 14 a.m. is generally very light, mainly due to the relatively small driving force of the Asian market! Generally, the oscillation amplitude is within 30 points, and there is no obvious direction. Mainly for adjustment and correction of the market. Generally, the direction of the trend is opposite that of the day; for example, if the trend rises on the day, it is mostly a small and volatile decline during this period.
Due to the lack of direction in most of the market during this period, foreign exchange traders can observe around 6–8 a.m. if the market is in a fluctuating pattern (looking at a 15-minute or 5-minute chart). You can operate from 5 to 15 points when the market fluctuates to both ends, only placing a stop-win and not a short-term stop-loss. If you cannot make money after 11 o'clock, you need to close your position and stop losses in a timely manner.
This approach, known as the 5-point method, cannot be fixed on the market and is suitable for investors with low operational skills. The final stop loss can be set at around 30–40 points! Real traders are not applicable!
The European morning market is from 14:00 to 18:00 in the afternoon, and there is usually a market after 15:00. After the start of foreign exchange trading in Europe, funds will increase. The foreign exchange market is a market where money accumulates, so the large amount of funds there will fluctuate greatly. And this period will also be accompanied by the release of some influential data on European currencies! The general oscillation amplitude is around 40–80 points.
During this period, the real market usually starts after 15:30, and more than half of this market will be accompanied by technical indicators such as deviation and breakthrough, so it is a relatively easy opportunity to seize.
From 18:00 to 20:00 in the evening, it is the noon break in Europe and the early morning in the American market, which is relatively light! This period is the noon break between Europe and China, and it is also the eve of waiting for the start of the United States.
20:00–24:00 is the afternoon trading time for the European market and the morning trading time for the American market! This period is the time when the market fluctuates the most, and it is also the time when the amount of funds and the number of participants are the highest. Generally, the market price is above 80 points. During this period, we will act completely in the direction of today, so it is expected that this market will follow the trend of the drama. It can be in the same direction as Europe or in the opposite direction. In short, it should be consistent with the trend.
From 24:00 to early morning, it is afternoon trading in the United States. Generally, by this time, a larger market has already emerged, and this period is mostly a technical adjustment to the previous market.
From the above, it can be seen that for individual foreign exchange trading investors in China, the foreign exchange trading period is quite favorable, and the most important fundamental data is mostly released by the European and American markets. This period happens to be in the afternoon and evening in China and will not affect the personal lives and work of investors. You can read and trade in your leisure time.