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Forex Scalping - The best hours to trade

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  1. The Best Hours for Scalping Forex

  2. The Best Hours for Scalping Forex • The best hours for scalping Forex entirely depend on the specific technical strategy used in scalping. The choice remains absolutely personal. Some scalpers might choose to trade in highly liquid, volatile and strongly directional markets while others like variable and floating markets.

  3. The Best Hours for Scalping Forex • However, these two diverging markets present entirely different markets where profit can be maximized using specific strategies. This article is dedicated to explaining the time periods which can be best suitable for each specific strategy for optimum profit.

  4. The Best Hours for Scalping Forex • There can be no logical obligation for a scalper to exit their positions when there can be indications that holding that position a bit longer can ultimately bring more profits. There are no hard-and-fast rules for trading styles, and it mainly involves better risk management and larger profits.

  5. The Best Hours for Scalping Forex • Generally, scalpers might exit their positions immediately for maintaining their trading consistency, but they can also choose to simultaneously apply numerous trading strategies.

  6. The Best Hours for Scalping Forex • At times, it can be a more beneficial and prudent decision to hold the positions for long periods in the volatile market situations contrary to exiting the position, and traders may not choose to lose this opportunity for simply considering them as the pure scalper.

  7. 7:00-8:00 am EST • During this period, the European markets generally face variable market conditions. The market already absorbs the statistical data of the European session, and the period is known for option expirations and news releases. Many traders choose to wait for the opening of the New York market at 8 am and plan their strategies when the North American traders enter the Forex market. The trading activities remain low thus liquidity remains uneven.

  8. 7:00-8:00 am EST • This can be the perfect playing ground for the scalpers who prefer uneven market condition to experiment and refine their strategies. This period is best for the strategies that aim to utilize the price movements on either side to gain profit in choppy market conditions. However, it should be understood that certain expected economic events might add fuel to the choppy market conditions, making it more agitated than originally anticipated by the scalpers.

  9. 7:00-8:00 am EST • Moreover, the expected economic situations might result in slow but steady directional price movement in either direction as the prices steadily rise or fall particularly during the one and a half hours before 8.30 releases. Even the prices can be unidirectional; the slow movements provide the best conditions for scalpers to use buy and hold strategy leading to the release.

  10. 8:00-10:00 am EST • This period is marked by the opening of the New York market, option expirations and release of a number of economic news that influence the market. This period is certainly the best volatile and liquid time for trading during the day. This time scalpers can use appropriate strategies to get maximum return from the market.

  11. 8:00-10:00 am EST • This period is the period when micro-trends take precedence. The scalpers need appropriate and reliable technical strategies to utilize the extremely changing conditions for fully utilizing the price movements. The technical aspects of trend scalping will be discussed later, here it will be sufficient to mention that in this highly trending situation building and maintain a profitable position over the long run when possible can be extremely rewarding.

  12. 8:00-10:00 am EST • However, it is highly imperative that for scalping, quick decision in entering and exiting positions are required to let the profitable openings running and close the losing positions, otherwise quick negative swings can counteract all the profit earned through other positions. But this doesn’t mean that scalpers shouldn’t take full advantage of strong trends through their right guess. Scalpers should remain alert of the price situations.

  13. 8:00-10:00 am EST • The scalpers need to adopt the strategy of stop losses while entering the positions during this period to break even the trades and let those profitable positions run as long as possible. The stop loss conditions will allow some protection, and thus safe positions can be allowed to run for a long time while traders can continue scalping on other positions.

  14. 3:00-7:00 pm EST • During this period, most of the opened banks in the United States gradually start closing for the day. Obviously, the period from 5 to 7 pm is marked as the lowest trading periods of the day. Even though the Forex markets still remain open, most of the leading markets reach closer and therefore, the trading activity is considerably reduced during this period.

  15. 3:00-7:00 pm EST • This is the golden period for the scalpers who enjoy exploiting uneven fluctuations for trading during slow and calm markets. During these hours traders can apply scalping strategies using manual or automatic methods for quick yet low risk profits.

  16. 3:00-7:00 pm EST • The period between 3 – 5 pm are rather more volatile, and many scalpers like to trade during this period for more profits. Most of the banks in the United States still remain open during this period and therefore, the risk and volatility are higher than the period from 5 pm to 7 pm. Once the banks across the developed countries are closed for the day, the market becomes quiet and choppy.

  17. 3:00-7:00 pm EST • The best approaches for trading under such choppy conditions are small and rapid trades without building and holding positions for long. Since the markets don’t have uniform movement and marked with uneven trends, there is no benefit from changing the stop loss conditions and holding positions for long. The traders prefer to engage in multiple trades in quick succession to deal with such situations.