Strategically important moments of the trading day

26 abril 2016, 17:11
Anderson de Carvalho Manilha Braga

UTC/GMT; DST (Winter time)

Sunday 21:00 (22:00) - Opening of the Trade 
rollback after Friday; it is better to watch the terminal closely

21:00 DST (22:00) - opening of the trading session in Wellington (New Zealand) nothing happens, the trading is slack.

23:00 DST (24:00) - opening of the trading session in Sydney, the trade becomes more brisk in anticipation of Tokyo trading session opening in an hour.

Before Tokyo freely two transactions may be made (to both sides; with profit of 5-10 pips)

24:00 - Tokyo trading session opening, trade surges. It is worth to take into account corporate relations between Asian investors. If you see one going one or another direction - the others would follow his direction all at once.

01:00 - Singapore session opening; the trade surges in anticipation of openings of two big stocks in Shanghai and Hong Kong. Right before the Chinese session Euro usually declines until the opening of Shanghai and Hong Kong.

01:00 - 01:30 - Euro declines until Chinese Session, but there can be exceptions from time to time. Be careful.

01:30 - opening of the Shanghai and the Hong Kong Sessions. There usually begins large-scale trade in the whole Asian-pacific region

A word about China

(Shanghai and Hong Kong working hours clash)
A structure of Chinese export is such that most part of articles is paid in dollars, so it is logical to suppose that China has no need in additional dollars. That is why there is usually EUR/USD growing during the Chinese session.
China is one of the countries that possesses the largest gold and currency reserves on the planet. If China was going to sell some part of its dollars, there would be enough panic for Euro to grow up. In addition, China is the biggest lender of the United States.
It seems that it would be unprofitable for China to get rid of the dollar and threats to diversify foreign exchange reserves are mostly speculative.

Pay attention to China and its actions.

If Chinese are buying the dollar - the whole day will be like a casino.

01:30 - 02:30 - euro usually grows during this hour

02:30 - 06:00 - transactions may be in different directions on the EURUSD; Asian exporters convert part of their profits both in dollars and Euros

06:00 - closing of the Tokyo Session; if Euro had been actively sinking till this moment, then after closing of the Tokyo Chinese will drive Euro up.

06:00 - 07:00 - figuratively speaking is "Chinese hour" on market; Chinese and Singapore take matters into their hands. Euro usually grows.

Asia is enormous commercial and industrial region with abundance of inexpensive high quality goods and gigantic circulation of finances. There are, respectively, many transactions on stock exchanges, so you should monitor transactions and exchange rates at the opening of LONDON Session after the trade ends in the Asian region

07:00 DST (08:00) – opening of the London and other European Stock Exchanges. Observations reveal that sales of Euro usually dominate within the first hours of trade.

09:00 - Singapore and Asian Session closing. Almost immediately or within an hour is spurt of Euro or change of trend (usually) till 11:30; no one bothers Europeans.

10:00 - 10:30 - is often a change of trend in the European session;

11:00 - 13:00 - completion of the trade cycle in oil trading floors of Dubai, Qatar, Emirates and etc.; it seems that they, too, have no need in dollars since the oil trading is in dollars. So, mostly Euro grows up;

Worth of noting are the ast hours of trading floors in the Middle East. It is an oil region, exchanges don't work for long, but volumes are not small, with plenty of petrodollars; it can be assumed that they had no reason to buy dollars.

13:00 - 13:30 DST (14:00 - 14:30) - it is time to close all unsafe positions in anticipation of the upcoming American outrage or to set block to prevent loss of your money. Euro usually sinks before American Session.

Within 13:00 and 13:30 DST UTC/GMT (14:00 and 14:30) are confusion and Fuss before the opening of three major stock exchanges - New-York's, Toronto's and Chicago's. It is time to safeguard your positions!

13:30 DST (14:30) - opening of U.S. and Canada stock exchanges; European session is still opened. At this time comes the large-scale, hard-predictable trade. Don’t try to treat news; pure speculation; trends are formed quickly;

13:30 DST (14:30) - U.S. is leading during these hours. It is impossible to predict the direction of trend. The trend which had formed close to the closing of London, Zurich and Frankfurt often changes to the opposite direction.

15:30 DST (16:30) - Closing of the European Session. It is often that the Euro trend rapidly changes.

19:00 - 20:00 DST (20:00 - 21:00) - Last working hour of U.S. Session. Former trend often resumes till 20:00 - 20:30 DST (21:00 - 21:30);

The first and the last working hours of almost every exchange are surge in activity time of institutional clients with a lot of money and of very large funds. But this surge doesn't mean that they do nothing within the session. They analyze the situation. Transactions occur within these first and the last hours. This allows to predict price movements at the opening and closing of major stock exchanges.

Make transactions before exchanges' opening (just before 1 - 2 min)

Within the first night hours (UTC) there is usually a rollback on EUR/USD (the pair goes down) almoast untill the opening of Tokyo.

On Friday occurs mass hit of stop-losses.
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