1. Market Cycle
Forex Market moves in a fairly predictable cycle on a daily basis. It is as your local
traffic, where you’ll have traffic jam during certain hours in a certain direction
flow, and other hours at the opposite direction. If we can predict market
direction during this cycle, we will have an advantage that most traders don’t
have. It is like having local traffic radio on while driving, letting you know where
are the accidents and delays, so that you can choose the least travelled road.
Market generally moves in the following manner:
2:00pm ~ 9:00pm PST Ranged market.
9:00pm ~11:00am PST Market prepares to breakout prior to London open
11:00pm ~ 12:15am PST Market reverses as Asian traders take profits
12:15am ~ 2:00am PST Market Trend Re-Establish in the direction of the Asian
session
2:00am ~ 4:00am PST Market Trend Continuation
4:00am ~ 5:15am PST Market reverses as we see some profit taking
5:15am ~ 6:00am PST Market Trend Re-Establish
6:00am ~ 6:30am PST Market Minor Reversal
6:30am ~ 8:30am PST Market Trend Re-Establish and Continuation
8:30am ~ 9:30am PST Market Minor Reversal and profit taking
9:30am ~ 2:00pm PST Market Ranged Continuation