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Global Forex Order Flow Times, And Regional Percentages:
U.K. and Euro-zone 52.6% (01:00 EDT-11:00EDT)
Asia 21.1%. (18:00 EDT-03:00 EDT)
U.S. 16.6% (07:00 EDT-16:00EDT)
The above is the Bank for International Settlement numbers that analyze the global flow of forex trade. It reveals the reason that we do not expect too much to happen, (and we are usually correct), from 10:00 EDT until at least 19:00 EDT. It also reveals why the European futures market open, from around 01:00 EDT through until the Chicago reversal at 07:00 EDT are the main times to expect sustainable moves.
For maximum forward momentum look to place/instigate new orders around the following times:
23:00 EDT (Tokyo return from lunch)
02:00-03:00 EDT EDT (European Open)
05:00-07:00 EDT (U.S. futures reaction to London oil, gold, and Libor fixings)11:00 EDT (European close)
Bonds, equities, futures, commodities, all dominate in the U.S. session and as a result forex values are pulled from pillar to post as major global markets wind down their trading day just as the largest commodity, bond and stock markets get go from 07:00 EDT. That is the reason that we do not expect too much to happen, (and we are usually correct), from 10:00 EDT until at least 19:00 EDT.
14:30 EDT (Nymex oil market close) The 14:30 EDT time-frame is the exception to the rule, most days anything placed at this time will not follow through too far, and will very likely drift aimlessly through until swap interest at 17:00 EDT. If traders are looking to get involved in this period it should be done with reduced lot and only if the S&P market is moving hard.
16:00 EST through to 20:00 EST is a an absolute no-man's land of forex movement. Anything new that is loaded outside of these times may not follow through with great momentum. We will not be looking for anything other than Asian session drift trades at that time. Existing open alerts will be managed so that these low liquidity times are not an issue to potential follow through. The trade book will be closed for new orders from 11:00 - 20:00 EDT.
From 11:00 EST on a Friday we will not be actively looking for alerts to take and will not likely post anything new ahead of the European open at around 02:00 EST on Monday. We will be here, we will be monitoring the Friday close and the Sunday open/gaps, but we really do not want to get involved in the thin liquidity and volatile reversals that Friday/Sunday trade can often bring. It will have to be a very strong set-up to draw us in during these times.