| Forex Day Trading Announcements |
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| Written by Bob Forex |
| Wednesday, 29 September 2010 17:50 |
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Traders who want to buy and sell in counter trend are wanting for currency pairs which are volatile. The volatility ensures adequate movement of the price to make trade beneficial. To trade EUR JPY in a counter trend makes a trader look for signals to enter trades, build a profit and then leave a trade. There are many systems used by traders to indentify the marketplace with counter trading property.
Traders who want to buy and sell in counter trend are wanting for currency pairs which are volatile. The volatility ensures adequate movement of the price to make trade beneficial. To trade EUR JPY in a counter trend makes a trader look for signals to enter trades, build a profit and then leave a trade. There are many systems used by traders to indentify the marketplace with counter trading property. One general method to trade EUR JPY in a counter trading way is to trade as soon as US market has closed and before Asian market has opened. This is a window of opportunity of 2 - 3 hours. What occurs is amount of trading drops and the movement is more predictable. The big trading in the counter trending market is just preceding to an announcement. Announcements such as US Non - Farm Payroll figures cause major traders such as banks to reduce trading or stay out of the market altogether. Again the level of trading drops and hence the range of movement is generally limited (when compared to typical fluctuations). This will allow for trades to trade in a counter trend. The period this case is up to 15 hours. Look at this counter trend trading example. If a current trend is long (meaning the cost is increasing) then trader of counter trend trading approach will sell that specific currency pair and wait to strike a profit target before buying it back. An additional technique to trade EUR JPY successfully in a counter trading method is to look for day mixed signals. Mixed signals take place when the quantity of buyers and sellers is about equal. This means neither the bulls nor the bears are winning. What is likely to happen is to EUR JPY pair is there will be a high of approximately 50 pips above than open and a low of roughly 50 pips below open. So if the tend was long preceding to the mixed signal, then going short is the option taken by the trader. With this procedure trader has full 24 hours to check the price movement and go into the marketplace at appropriate time. Care needs to be taken here because the mixed signal days are time and again followed by strong trend days. For forex day traders this system is very good and it provides ample opportunity to earn a profit. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about forex day trading. Stop by Bob Forex's site where you can find out all about EUR JPY. |