Why is TIME so important in forex market , And how does it affects price ? 🧵
Imagine you want to trade AUD/CAD or any other pair, when will u trade ?Asian session / London session / New York session ?
You will be able to answer it by the end of this thread
Imagine you want to trade AUD/CAD or any other pair, when will u trade ?Asian session / London session / New York session ?
You will be able to answer it by the end of this thread
Why do we use time in forex ?
There is no infinite supply of orders. Institutions cannot come and buy all positions. We require fair value to maintain our economy , So they manipulate price in a certain manner to accommodate new orders and liquidate the existing ones.
There is no infinite supply of orders. Institutions cannot come and buy all positions. We require fair value to maintain our economy , So they manipulate price in a certain manner to accommodate new orders and liquidate the existing ones.
The algorithm that accomplishes this by clearing positions operates on a specific timing, which is why we use specific time zones for different pairs.
Different country have their own timezone’s based on their geographical location.
Based on thier locality time zone can be classified into three
please note these are kill zones not sessions
• London →(2:00 -5:00est)
• New York → (7:00 - 10:00est)
• Asia → (20:00-24:00)
Based on thier locality time zone can be classified into three
please note these are kill zones not sessions
• London →(2:00 -5:00est)
• New York → (7:00 - 10:00est)
• Asia → (20:00-24:00)
what is a currency pair in forex ?
Forex stands for foreign exchange , in a exchange there are two parties.
x and y , in forex know as Base and Quote.
Base is the amount of price required to purchase quote
example- in EUR/USD
we need 1.08 USD to purchase one EUR
Forex stands for foreign exchange , in a exchange there are two parties.
x and y , in forex know as Base and Quote.
Base is the amount of price required to purchase quote
example- in EUR/USD
we need 1.08 USD to purchase one EUR
To understand which currency follow which session
we can classify currency into three
• Majors
• Crosses
• Exotics
we can classify currency into three
• Majors
• Crosses
• Exotics
Majors
Majors are currencies with USD in them . either in base or in quote,
example → eur/usd, gbp/usd, aud/usd, usd/jpy, usd/chf etc
majors are highly volatile in London and New York session
so trade these pairs from 2-10 am EST
we in MMT like to trade even lunch hours , entries from 2-10 is fine if setup presents
Majors are currencies with USD in them . either in base or in quote,
example → eur/usd, gbp/usd, aud/usd, usd/jpy, usd/chf etc
majors are highly volatile in London and New York session
so trade these pairs from 2-10 am EST
we in MMT like to trade even lunch hours , entries from 2-10 is fine if setup presents
Asia majors
Asia majors are currency pairs with AUD,NZD or JPY
if either one of these currency is present in your pair then you can trade Asian session.
even in AUD/USD or NZD/USD or USD/JPY you can trade Asian session
Asia majors are currency pairs with AUD,NZD or JPY
if either one of these currency is present in your pair then you can trade Asian session.
even in AUD/USD or NZD/USD or USD/JPY you can trade Asian session
Crosses
Crosses are basically all the currency pairs which doesn’t have USD in them.
if the cross pair has Asia major currency , then we can trade Asian session
example - how to trade AUD/CAD if you have 1) AUD news 2) CAD news 3) BOTH
1)If AUD news present focus on trading it on Asian session . 2)If CAD news present focus on trading London or new york session . 3)If we have both news then we trade whole day.
If cross pair does not have asia major then we can trade london and new york kill zone
Crosses are basically all the currency pairs which doesn’t have USD in them.
if the cross pair has Asia major currency , then we can trade Asian session
example - how to trade AUD/CAD if you have 1) AUD news 2) CAD news 3) BOTH
1)If AUD news present focus on trading it on Asian session . 2)If CAD news present focus on trading London or new york session . 3)If we have both news then we trade whole day.
If cross pair does not have asia major then we can trade london and new york kill zone
Exotics are pairs with least volatility , so better avoid trading it .
This is how we use time in forex. Now, if you've come this far, I want you to go through this week's economic calendar and identify which pairs you'll trade on May 15th and during which session .
You need understanding of session and news for that
For news check out - ‘x.com
You need understanding of session and news for that
For news check out - ‘x.com
Resource - ‘Most of these information are from Sunday YouTube live sessions’
For more daily trading analysis and content,
Follow me at - @Hopefx7
Team- @TradingMMT
Mentor- @arjoio
#MMT #MMC
For more daily trading analysis and content,
Follow me at - @Hopefx7
Team- @TradingMMT
Mentor- @arjoio
#MMT #MMC
Loading suggestions...