Is There A Relationship Between Time and Price in Forex?

[moonchild]

In forex trading, there are a lot of ways to look at the market, as we all know there are different types of traders, and in this post we will be looking at an aspect of trading that is not must talked about which is the relationship between time and price.

Is there any correlation between the two? Yes, during Asian session the market is mostly quiet and there isn't much movement, but during London session there's a lot of volatility and movement, also in newyork session it's mostly reversals, by understanding how these time zones correlate you'll be able to make money easily from the market, because all it boils down from here is to align yourself and take advantage of such moves.

 

[Holicent]

My opinion is that about forex is that time and price are relative. The essence of forex trading are the changes in the value of currency over time. Traders predict future price trends by analyzing existing price data, estimating time periods, ranging from minutes to months. Timing also affects market fluctuations, with more transactions taking place during a trading period. Moreover, economic events occur over time, affecting the value of money. Understanding this relationship between time and value is key to successful forex trading

 

[FXOchartist]

Market sessions do influence volatility, the busiest sessions are usually the London session and the New York session with a higher moving average than other sessions such as Sydney and Asia, this is mostly because at those hours more large banks in the world are operating so transaction volume increases which implications for market volatility.

However, sometimes in the Asian session, there can also be a spike in volatility, this usually occurs because it is triggered by large influencing events such as high-impact news and other turmoil that may occur.

 

[FinTrader]

You also need to pay attention to the publication time of important news from the economic calendar. They are the ones who often create strong volatility in the market, be it the European session or the American session. And decide for yourself whether you need to trade at this time or wait until the market calms down and gives signals for safer entries.