From a trader's point of view, illiquid market conditions will have chaotic movements or gaps because the level of buying or selling volume at any given moment can vary greatly. A highly liquid market is also known as a deep market or a market that is smooth and price movements are also smooth. Most traders need and should require a liquid market because it is very difficult to manage risk if a trader is on the wrong side of a big move in an illiquid market. Here are three signs to watch for:
Gaps When Trading Forex
Gaps, or differences in forex are different from other markets. However, price differences in forex may occur when interest rate announcements or other news announcements that have a large impact are released against expectations.
Gaps can occur at the opening of trading at the beginning of the week along with Sunday afternoon in the US. If there are news announcements over the weekend, then the overall gap is usually less than 0.50% of the currency value.
Forex Market Shows Little or No Gaps
Markets that take place 24 hours a day such as the forex market are considered to be more liquid or tend to have fewer gaps due to the sustainable nature of the equity market. This allows the trader to enter and exit the market at the trader's discretion. Markets that only trade for a small part of the day such as the US equity market or the Futures Exchange will condense into a thinner market as prices could spike at the open if overnight news comes out against market expectations.
Forex Liquidity Indicator
Brokers often offer a "volume" option on a chart by which a trader can measure market liquidity. This forex liquidity indicator is interpreted by analyzing the bars on the volume chart.
Each volume bar represents the volume traded over a certain period of time, thus providing traders with a suitable liquidity forecast. It is important to remember that most brokers only reflect their own liquidity data and not the overall market liquidity. However, using a broker's liquidity as a measure can accurately represent the retail market depending on the size of the broker.
Time Differences Offer Different Amounts of Liquidity
Short-term traders or scalpers should be aware of how liquidity in forex varies throughout the day. There are less active hours like the Asian Session which are often tied in narrow ranges which means support and resistance levels are more likely to hold from a speculative point of view. major market session moves such as the London and US sessions are more prone to breakouts and larger percentile moves on the day.
The time that lets you see the biggest moves is the US Morning Session as it overlaps the European/London Session which accounts for about +50% of the total daily global volume. The US session alone accounts for about 20% and in the US Afternoon, you will often see a sharp decline in aggressive moves except when the Federal Open Market Committee (FOMC) comes up with an announcement that surprises even if only a few times a year.
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SNR (Support and Resistance) is fairly popular in the world of forex trading. This is one of the most frequently used techniques in technical analysis. Without it, traders will experience difficulties and even lose in carrying out trading activities. The support point is the point which is believed to be the lowest point of an asset in a certain period. While the resistance point is the point that is believed to be the highest point of an asset in a certain period. In simple terms, support and resistance are likened to the two most discussed attributes in analysis where support is a level that has the potential to withstand price declines. Meanwhile, resistance is a level area that has the potential to hold back price increases. These levels are used to determine whether the price will continue or reverse. Basically, SNR aims to find out the right area when taking a buy or sell position and determine the target price movement. The support area is generally an area used as a reference f...
SNR ( Support and Resistance ) merupakan batasan-batasan yang dapat digunakan oleh para trader untuk melakukan entry. Ketika SNR itu sendiri di tembus maka potensi untuk lanjut akan lebih besar, sebaliknya ketika SNR itu tidak mampu di tembus maka pasar akan berbalik. Support berada dibawah, area bawah yang ditandai dengan rijeksi kuat atau rijeksi panjang ke bawah, yang artinya seller kuat yang pernah mencetak harga. Sementara Resistance berada diatas, yaitu dimana harga tertinggi yang pernah dicetak. Note: Apabila membutuhkan Free materi dan info lebih lanjut hubungi 03315106055. Free materi soft copy hub wa admin 081258066174 Info Private/class trading premium berbayar (dibimbing selamanya sampai profit konsisten dan mandiri). Kunjungi akses langsung web kami www.wijayatrading.com
Breakout adalah sebuah momen kejadian dalam pergerakan harga, ketika harga melewati area atap alias resistance. Resistance diartikan sebagai level harga yang secara psikologis menahan harga untuk lebih lanjut. Resistance ibarat atap, jika sebuah bola dilempar dan terbentur atap, maka secara logika, harga akan cenderung turun. Oleh karena itu biasanya pelaku pasar berhati-hati ketika sebuah harga menyentuh area resistance alias atap psikologisnya. Trading Breakout dengan Analisa Fundamental Strategi trading breakout melibatkan penggunaan harga instrumen yang bergerak di luar kisaran trading yang telah ditentukan, sering kali dipicu oleh peristiwa berita. Sementara trader dengan strategi ini harus tetap berhati-hati saat masuk ke rilis berita (karena volatilitas tambahan dapat menembus support atau resistance yang trader gunakan untuk menetapkan posisi stop), trader masih dapat mengambil keuntungan dari reaksi berlebihan terhadap berita. Trader dalam situasi ini ingin menunggu berita a...
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