As liquidity dries up and spreads are soaring, even the basic indicators fail to deliver. Ashton Fraser explains why the best thing a trader can do now is to ditch the trading screen and watch some football.
For Forex traders, it’s that time of year again. The time which harbours a love–hate relationship.
While many traders love the time off the screens, spending time with their families and having a break, it’s not that infrequent to find a few bemoaning the fact that their broker has shut down, disabling their platform and thereby eliminating the ability to make a single trade.
In theory, one might think that since these holidays are the busiest time for commerce with money flowing like no tomorrow, a 24 hour global market should allow ample opportunity to trade.
Except, of course, it’s primarily the banks who are the major movers of the currency markets. Hence, when they’re closed, it’s natural that everyone else, including forex brokers, follow suit. Come on, even bankers need a holiday, right? As a result, forex brokers shut down for a few days.
As we all know, even on the days when they allow some trading during this period, there’s going to be terrible and unpredictable price movements with higher spreads than normal. Trading during this time is folly, especially if you’re a scalper.
Here’s an example from the USD/JPY on the M1 timeframe. Overall, USD/JPY is usually smoother in price action (along with AUD/USD) compared to most other pairs, but even here you can see it’s not a pretty picture.
Take a look at the multitude of appalling price action occurrences:
- Consecutive long candles, followed by many short candles which really skews with the ATR
- A lot of the candles having huge wicks and barely any candle-body
- Whipsaws are visible within quite a few of the candlesticks
- Often you’ll see gaps appearing in data with price stalling for a few seconds, only to jump rapidly to an unexpected price
- Candle open prices are on many occasions different to the previous candle’s closing price
Failing indicators
All of these negative trading attributes virtually makes any sort of technical analysis very difficult, indeed. Just try using some classic trading tools and indicators such as the Bollinger Bands or the Awesome Indicator.
Even tried and tested indicators that analysts have been using for decades are no longer reliable. Overbought or oversold on RSI or Stochastic doesn’t mean much any more.
So with barely any Liquidity (which can result in your orders being executed in slow motion), and with barely any volatility (which means your 61.8% Fib retracement level may never get hit!), there’s no point in trying to make any pips during these winter nights. The best thing to do would be to grab a mug of your favourite hot beverage, lay back and watch the news or football instead.
There’s some top-flight football on during these days in the UK. The Premier League matches can be a good way to take your mind off trading then, if you forget for a minute who are the sponsors of an increasing number of clubs.
-----------------------
Ashton Fraser is routinely publishing his trading strategies at Forex Lasers
If you wish to become a Guest Contributor, please get in touch with our Community Manager and UGC Editor Leah Grantz leahg@forexmagnates.com
For Forex traders, it’s that time of year again. The time which harbours a love–hate relationship.
While many traders love the time off the screens, spending time with their families and having a break, it’s not that infrequent to find a few bemoaning the fact that their broker has shut down, disabling their platform and thereby eliminating the ability to make a single trade.
In theory, one might think that since these holidays are the busiest time for commerce with money flowing like no tomorrow, a 24 hour global market should allow ample opportunity to trade.
Except, of course, it’s primarily the banks who are the major movers of the currency markets. Hence, when they’re closed, it’s natural that everyone else, including forex brokers, follow suit. Come on, even bankers need a holiday, right? As a result, forex brokers shut down for a few days.
As we all know, even on the days when they allow some trading during this period, there’s going to be terrible and unpredictable price movements with higher spreads than normal. Trading during this time is folly, especially if you’re a scalper.
Here’s an example from the USD/JPY on the M1 timeframe. Overall, USD/JPY is usually smoother in price action (along with AUD/USD) compared to most other pairs, but even here you can see it’s not a pretty picture.
Take a look at the multitude of appalling price action occurrences:
- Consecutive long candles, followed by many short candles which really skews with the ATR
- A lot of the candles having huge wicks and barely any candle-body
- Whipsaws are visible within quite a few of the candlesticks
- Often you’ll see gaps appearing in data with price stalling for a few seconds, only to jump rapidly to an unexpected price
- Candle open prices are on many occasions different to the previous candle’s closing price
Failing indicators
All of these negative trading attributes virtually makes any sort of technical analysis very difficult, indeed. Just try using some classic trading tools and indicators such as the Bollinger Bands or the Awesome Indicator.
Even tried and tested indicators that analysts have been using for decades are no longer reliable. Overbought or oversold on RSI or Stochastic doesn’t mean much any more.
So with barely any Liquidity (which can result in your orders being executed in slow motion), and with barely any volatility (which means your 61.8% Fib retracement level may never get hit!), there’s no point in trying to make any pips during these winter nights. The best thing to do would be to grab a mug of your favourite hot beverage, lay back and watch the news or football instead.
There’s some top-flight football on during these days in the UK. The Premier League matches can be a good way to take your mind off trading then, if you forget for a minute who are the sponsors of an increasing number of clubs.
-----------------------
Ashton Fraser is routinely publishing his trading strategies at Forex Lasers
If you wish to become a Guest Contributor, please get in touch with our Community Manager and UGC Editor Leah Grantz leahg@forexmagnates.com
Devexperts Checks Off Type 2 SOC 2 Audit for Enhanced Data Security
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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