So Let's Begin.
To the untrained eye, the market moves in unpredictable, erratic movements throughout the day. But if you've spent as much time looking at the charts as I have over the years, you'll notice that the price movements are actually a lot less random than most people think.
Here's the thing:
Prices tend to trend (and retrace) at specific times of the day,
resulting in a predictable daily market cycle.
resulting in a predictable daily market cycle.
This happens largely because the Institutional Traders (i.e. the big traders who move the markets) operate in a predictable manner: they tend to close out their positions at the same time each day.
If you opened a trade in the direction of the trend at the same time these traders are exiting their positions, your stop loss will very likely be triggered by the resulting retracement.
So it's best to avoid trading at these times:
| GMT | EST | Reason |
| 6:00 - 7:00 | 2:00 - 3:00 |
Asian traders take profits as they prepare for the London session
|
| 11:00 - 12:00 | 7:00 - 8:00 |
European traders take profits as they go to lunch, and also to prepare for the opening of the U.S. session
|
| 15:00 - 16:00 | 11:00 - 12:00 |
European traders exit their positions as the London session closes
|
And That's It.
Simply avoid opening a trade during these times, and you'll see an instant improvement in your trading. You can apply this information right away.
Once you understand how the industry (and the market) works, the price movements on the charts suddenly don't seem so random any more, does it? :-)
Now go out there and make some money!
Ps: Remember the GMT for both the broker's are GMT+2
