Fx Trading: When Do Trends Begin?

As a forex trader you probably have your preferred pair, or pairs, that you trade often. After a while you recognize that currency pairs have a propensity to take on something of a personality. You additionally begin to get a feel for how they react to specific news releases. In this commentary we’ll describe the features of a particular forex currency market report – and then tell you where you can acquire your own copy absolutely free of charge.

Do you feel it would be helpful to know when trends in your currency are likely to begin? What if you were able, determined by years of data, to know what days of the week are best to trade in your specific currency pair? This could amount to forex secret trading because you have an advantage by knowing when these developments are probably to come about. Reviews have revealed what the most active trading day for a currency, and the best hours within that day to trade – including what are the most active trading hours within that day. Learn the details of Forex trends and download our free report that we call the CHEAT SHEET.

This information does not tell you HOW to trade forex, but rather WHEN to be able to make the most of your potential for a winning trade. We give you some guidelines as to how far the price is likely to go for the duration of this trend, how much of that move you can reasonably expect to seize, and finally how long the trend is likely to last.

Let’s make a start with the GBP/USD. Trading the four-hour (H4) bars research show 31% of trends get going on Thursday. Why use the H4 you ask? H4 offers the benefits of intra-day trading without having to always be watching your PC all day. Also, it filters out much of the “noise” of the lesser timeframes.

And what are the optimal hours to trade within those days? Statistics shows that between 1 and 9 am eastern time is the best, the most active. This should come as no great surprise because this period includes much of the time that the London market is operating. Hour of peak activity, where trends are most certainly to begin is 5 am eastern…which is 10 am in London.

Remember London is habitually five hours ahead of eastern time in the US. There is a small interval in spring and fall when the difference is four hours…and this is because the UK and the European continent do not go on and off Daylight Savings Time on the precise same day North america does.

Thus now we recognize the absolute best day and time to trade the GBP/USD is Thursday in the 5 am eastern hour.

Now, how long can we anticipate a trend to last? Again, using the four-hour bars we observe that 48% of the time the trend lasts between 6 and 11 bars. Six H4 bars equals a full day – 24 hours. 11 of those bars equals 44 hours, just about two complete days.

Finally, how much of a move can we anticipate that trend to make and how much of it can we realistically anticipate to seize? In our GBP/USD illustration Thursday is yet again the winner showing that the usual pip gain is 147 of which we can expect to capture around 85% or 125 pips.

Armed with this data, do you suppose it would improve the odds of your currency system forex trading? While not an precise forex currency market report, this information will help put the odds on your side.

Visit our site under the Resources section to download and read your own copy of this 37-page report which we call the Cheat Sheet.

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