Sunday, December 03, 2006

The good and the bad trading hours

Here are some more trading times, that I find it usefull.. Pls note that all times are Eastern Time (ET hours).

If we allow the 3 am ET hour to be an arbitrary 100 representing the big price moves then:


3 AM

4AM

5AM

6AM

7AM

8AM

9AM

10AM

11AM

NOON

100

41

36

5

27

18

36

45

45

18

1 PM

2 PM

3 PM

4 PM

5 PM

6 PM

7 PM

8 PM

9 PM

10PM

41

5

32

18

23

18

23

14

18

5

11 PM

12 PM

1 AM

9

0

5



The 9 am– pm block moves more than the first three London hours.
2 am ET: Weak
3 am ET: London open hour (EUR/USD) - best hour for price movement.
4 am ET – 5 am ET: ~ 40% of 3 am price movement
6 am ET: Lull
7 am ET: Picks up again
9 am through 1 pm ET: Stronger (more action than 3 am – 5 am)

Summary: 3am - 5am has almost the same number of big price moves as 9 am - 1 pm

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