Scalping timings

On December 1, 2010 | By | In Strategies

According to the strategy that is going to be used we should choose different periods of time. The first choice that should be made is the kind of market where we would like to trade; some scalpers prefer directionless markets while others prefer strongly directional ones. This choice is very personal and also depends on the experience that the traders have, but the two kind of markets offer different trade environment where we can bear greater profit.
The trading styles respond to intuition and there are no rules about it, traders only should respect rules about money and risk management. They can combined different strategies in the same moment or pass from one to other. It is common that during the most volatile periods of trading, positions held longer than what is common with scalping can be more beneficial and prudent.
No let’s see the trading times in ET (New York time, where the biggest stock market is placed in)
  • 7:00-8:00 am
In this period European markets offer choppy conditions and traders are preparing itself for the opening of the New York market at 8 am. Mostly of the traders choose to reconsider their strategies and wait North American players to enter in the forex market. London and Frankfurt have their markets also opened but liquidity lessens as trading desks reduce gear.
This period is similar to the last two hours of working of the North American market but in a more volatile version.
  • 8:00-10:00 am
In this period the markets of New York, London, and Frankfurt are all open. A lot of new releases are issued and option expiries also take place. Due to this reasons, this period is the most liquid and volatile of the whole trading day. In this moment micro-trends begin to proliferate, markets events are been placed affecting to the forex market.
Traders now should apply their technical strategies for to exploit rapidly changing conditions
  • 3:00-7:00 pm
This period could be separate into two different phases. The first one is the period between 3pm and 7pm when the banks in USA still opened but are closing gradually until the end of the day. This period is suitable for those scalpers who want to take a little risk in volatile markets in order to get more sizable profits. The second period is between 5pm and 7pm the quietest part or the trading day, almost all the banks are closed and the trading activity is reduced. This is the perfect period for those traders who prefer clam markets and want to get great effectiveness in directionless oscillations.

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