TIP: Why some strategies are so effective except on Fridays?
|Remember: London is responsible for about one third of all the Forex volume.
This means that 2 PM on a Friday in New York is already late afternoon in London, and London traders are closing their positions for the week. At the same time it is already Saturday morning in Asia, so we can't expect any volume from that part of the world. The closing of London positions in a less liquid environment - due to the absence of Asian traders - gives way to violent price reversals and erratic moves.
It is recommended to close short term positions until Monday and avoid to open new trades on Friday afternoon London time. In any case, it will depend on the strategy you're using. If you take the above edge and focus on profiting from the closing of London positions, then Friday might be a good time to trade. Read More
Do you want to learn more?
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