Owing to the vast availability of technical tools available, traders can get a fire hose of information every time they trade. It never allows a trader to miss a thing and that is one of the biggest plusses of the market in recent times. However, most FX experts always suggest employing an end of day Forex trading strategy to trade their currency close.
In response to this, many eager traders question – ‘Why is, say, the New York Close or the London Close so important?’ The post elucidates those traders with its appropriate answer.
Why Trade a Currency Close with an End of Day Forex Trading Strategy?
- Trading Signals Resulting are Very Clear
Right at the close of a session, say the New York Session, the trading signals are very clear. Traders get a clear picture of the market and even the signals which occur carry a bit more weight to those which occur during the course of the day. Hence, trading with the details shown on the charts is much easier.
Example – Say, a trader is trading GBP USD on a 15 minute daily chart at the peak time of the trading session. Obviously, the chart which they will see will be stacked up with plenty of readings. With so many random movements taking place, the task of interpreting the chart properly can raise plenty of confusion.
Now, if one takes a look at that same chart at the end of the day, a clearer picture will result. The signals and indications will be clean, relevant and that will also create less of mental stress. This is one reason why experts suggest using reliable end of day Forex strategies and trade at a session’s close.
- Convenience in Trading
There are many who don’t treat Forex trading as a primary mode of earning money. They have their own business or office and only when they come back, they sit in front of their screen and trade. For those people, trading end of the day is an apt option.
Price Action signals – one of the better end of day Forex trading strategies is a highly recommended option for EOD traders. They have options namely–
Pin Bar Strategy
Inside Bar Set Up
Fakey Set up
Each of these involve basic level price action set-up and using these, traders can make the most of the profits which come their way at the day’s end.
An Alternative Option – Traders wanting to trade at end can also make use of EOD signals. These signals in an end of day strategy forex will allow one to get a clearly display of the price range after completion of the trading day. It will also present precise Entry, Stop and Take profit signals.
These alone are good enough reasons to trade at a sessions close. Experts put this entire explanation like – ‘When the market closes, there is either a trading signal or no signal at all. When a signal occurs, a trader can adjust their trades, carry out their operations and take their profits.’
So, experienced traders who have not done it before, try it out today. As for newbies, it’s important to first find a reliable end of day Forex trading strategy, work in demo account and then move ahead with it.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.