Even a fresh and inexperienced dealer can repeatedly gain about ten or more pips in a day on an average by doing the trade during the regular New York Closes or between 2 to 4 in the evening. Eastern Time in U.S. The Forex trading markets do not have any specific habits and frequently goes on repeating regular activity patterns. As an inexperienced trader and even among experienced dealers, if one spends sufficient time in noticing the movements of market with due respect to time, you will start seeing some daily predictable designs.
One of the major habits takes place during the afternoon in New York and also in New York regular closing. This particular pattern is generally seen the USD/EUR in a frequent manner. At this point of time, the flaws of trading are generally light with the help of low volatility. If the dealers notices regularly at this point of time, it starts becoming apparent and tends to pivot that occurs after 2p.m. Here, I use “pivot” to signify a “retracement” or pull back from the overall regular trend.
In simple words, if a trend of a day for USD/EUR starts rising, between 2 to 3:30 p.m., the trading market will experience a lower pullback, generally around twenty to thirty pips. On the contrary, if the regular trend for USD/EUR moves in a downward position, after 2 p.m. a retracement of nearly twenty to thirty pips is generally observed. By studying the charts and market in New York after 2 p.m. in the afternoon, an inexperienced and new dealer might identify this specific pattern and then execute a high gainful deal in a safe manner.
If an individual trade at this point of time on a continuous basis, they can expect a profit of average 10 or more than 10 pips in a day with ease. At the time of closing, I must declare the apparent disclaimer, i.e trading Forex is dangerous that comes with no guarantee. You should make sure that you should always perform trading with caution. You should never do trading more than you have to pay for to lose. Spend some time noticing the market to find its styles so that you can make smart and high probable deals.
Steps :
1) Using ATR indicator check volatility for USD/CAD watching daily chart. If it is 100 you can set stop loss and profit to be 100/4=25 pips. Usually it is around 80/4=20 pips or only 10 pips.
Formula : Daily ATR / 4.
We use 1:1 loss/profit ratio.
2) Watch pivot points and market time to trade breakout (read text above).
Tell me your opinion about this strategy ?
