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Old 01-25-2007, 10:48 PM
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Kiwi Kiwi is offline
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Re: Trading Forex early in the AM

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New York, however, has the important news information. I don't know where you are, but can you name the head of the London central bank? How about the Fed? Get my point. When was the last time you stayed out of the market prior to German retail sales figures? My point, what happens in the U.S. matters.
This is true and also frequently makes the US session much less tradable than the European session.

I was trading currencies from Australia so the European session starts late afternoon although I've given that up to trade Asian futures because the hours are more lifestyle friendly. Because the "big" news doesn't occur during the European session you get beautiful trends and retracements on 5m charts. The shock of the 8:30 news announcements in the US seems to create an underdamped ringing in the markets that spoils such trend trading for some time afterwards. However, when the market didn't spike you often got some lovely trends thru until the NY afternoon.

Personally if I was in the US and really wanted to trade currencies rather than stocks or futures (you have a great range of things available in your timeframe) I'd either move to a larger timeframe or strategize my day based on whether there was an initial news spike.


Last edited by Kiwi; 01-25-2007 at 10:51 PM.
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