Friday, November 30, 2007

The Never Ending Post; a FOREX Scrapbook

This post will go on forever. I'm going to keep updating it with tidbits of info I find on the net about FOREX or technical analysis of FOREX. I like to keep notes in point form, and if I need more, there's always Google. To read this really fast, read the red text until something catches your eye.

Best time to trade (Eastern Standard Time)
Only trade when there is a market open somewhere, or risk getting reamed by a dealer (of course this only applies to day traders and scalps)

  • New York open 7:00 AM to 4:00 PM
  • Japanese/Australian open 7:00 PM to 3:00 AM
  • London open 3:00 AM to 11:00 AM
Often, the best times to trade is at the beginning 3-5 hours of the above mentioned opening times, because the major currency pairs tend to move the most in a particular direction.

The best time to trade is from 3 AM to 11 AM EST. The New York and London trading sessions overlap between 7 and 11 am EST. The volatility is much higher and trading opportunities are much more frequent with bigger moves, especially in these four hours.

The currency pair that moves the most during these hours are the USD/CHF, then the GBP/USD, then the EUR/USD, then the USD/JPY. This is when you can make 30-100 pips trading in just a few minutes or hours.

Notes from a "TraderInterview"
  • trade from 7am to 12 noon EST
  • use trendiness, pivot points from previous day
  • GBP - more range than EUR
  • JPY - all over the place
  • CHF - great trend and conservative
  • stops at 15 to 30 pips
  • 5 min. chart - reversal shows up here first
  • 15 min - pattern direction
  • 60 min - main trend direction
  • 5min and 15min match direction pull the trigger
Notes from a "TraderInterview"
  • FOREX is indicator driven
  • Linear regression channel (LRC) - use on any time frame from daily to 4 hour
  • LRC shows trend
  • when price goes below LRC it usually snaps back quick
  • weekly or monthly charts used to detect trend reversal
  • 10am EST is a common time for a reversal for most currencies
  • another reversal that is common is 11:30 am EST
  • reversal will seek its first support level


  1. Thanks.
    I checked out you blog, you don't have anywhere to leave a comment.

  2. Nice blog. Thanks for your work on it.

    I've recently created a completely free forex website which hopefully will be of use to you.

    The purpose of this site is to show you how the forex market reacted in the minutes and hours after news was released. Patterns have emerged. For instance, if the USD Non Farm Payroll number is significantly better than expected, the USD will initially gain against the GBP and Euro in the minutes after the number is released, and then lose value shortly there after.


  3. hi this is a very good blog. these tips are very useful for everyone, who want to come in forex trading, specially newbies. Thanks again for this.


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