When working on building of your own trading strategy, don’t forget to take the volatility of the currency market into your consideration. The Forex in Singapore as well as other parts of the world is working 5 days a week, 24 hours a day, which lets any trader from any place of the word take part in the global online trading and not to miss any big opportunity to increase your capital. Every trader must realize and take into his account the schedule of various trading sessions since the foreign exchange market at different period of a day may act differently.
Each currency pair that is available in Forex market has some volatility when it shows the biggest movements. It usually takes place during the certain hours of a day when the country is active and many events happen. Usually every country has biggest influence on its currency, so knowing the periods of each trading session may give you a hint which currencies it is better to trade.
London (European) session is the biggest Forex market and is more unpredictable than any other sessions. During the London session about 30% of daily
Trading volume are done on Forex market. The average price change for all currency pairs during the London session is about 80 pips. For example, the daily range of currency pairs as GBP/CHF and GBP/JPY is about 140 pips. In addition to these pairs, the most popular pairs in Forex market at this time considered to be USD/CHF, GBP/USD, USD/CAD and EUR/USD. Understanding of volatility for each traded currency pair helps you to set levels of take-profit orders more correctly.
It is a fact that after the London session is over, many large investors prefer to transfer their investments from the European currencies to the US dollar. As at that time the New York (USA) session starts that is the second largest turnover in the Forex market. Knowing the time of different sessions and their pecularities, can become the key for the creation of the trading system. The New York session is open from 12.00 to 20.00 GMT. The biggest volatility during the day is seen in the period from 12.00 till 14.00 when both European and American sessions are open.
After the USA session is over the Tokyo session starts, which runs from 0.00 to 8.00 GMT. This session includes all Asia and such big financial centers as Singapore Forex trading and Hong Kong. The biggest attention during this period is paid to the currency pairs GBP/CHF and GBP/JPY at an average daily movement of about 100 pips. Trading in Singapore is also focused on AUD, SGD and NZD currencies. Taking into the consideration the specifications of different sessions you can create a trading strategy that takes into account time zones when the appearance of a trend is most likely. Using the time aspect of trading sessions and some proven technical indictors is the clue to building a successful trading system.