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Volatility And Volume by Tahir4: 8:04pm On Oct 10, 2022
https://www.wikifx.com/en/newsdetail/202210099554879916.html?source=zme3

Abstract: We all have our various trading strategies, but they all focus on winning as many pips as possible and losing as little. If you are looking to accumulate as many pips as you can, limit your risk, and maximize your time your best bet is capitalizing on the strategies that target the big moves of the day. Today we are going to discuss what makes the markets move, how to identify when it is about to move and how to time your entries to take advantage of the big moves of the day.


  We all have our various trading strategies, but they all focus on winning as many pips as possible and losing as little. If you are looking to accumulate as many pips as you can, limit your risk, and maximize your time your best bet is capitalizing on the strategies that target the big moves of the day. Today we are going to discuss what makes the markets move, how to identify when it is about to move and how to time your entries to take advantage of the big moves of the day.

  If you intend on capitalizing on these large movements you have to ensure that you are trading with a broker that will have low fixed spreads and no requotes. To find such a broker I recommend you use the WikiFx app. This app helps you find the best-rated brokers who are verified and regulated globally. They also show you which brokers are known scammers with multiple cases of malpractice, so you will be able to avoid these brokers from the get-go. You will be able to compare brokers side by side and find the one that best suits your needs.

  What moves the market?

  There are several market participants which contribute to the overall !^ trillion-dollar pot that is the forex market but the most influential are the big financial institutions and banks which invest large sums of money in the markets to move prices as they please. The large candles we see are the large players turning up the “volume” in the market, essentially opening bigger positions to manipulate the market. This is usually done at the opening of every trading session and depending on which session the market is trading at, the large movements can be momentary or last for hours. This windfall of pips in the market are called “volatility”, and this is what we want to target as day traders.

  Some pairs are more volatile that others. Out of the 8 major pairs, GBPUSD, EURUSD and USDCAD are the pairs which tend to move the most. With these pairs you can expect to make 50 to 80 pips a day depending on your strategy ocourse. These pairs tend to move the most throughout the so focusing on these pairs is a good wa to maximize on volatility.

  Depending on which trading platform you are using you should use the volume indicator. This indicator shows you the total amount of positions which are opened on a pair. Little volume means there is not as many open positions for that instrument of pair, sudden spikes in volume should signal to you that big positions are being opened by the big market participants. You should start looking for intries when you see a rise in volume cause you know tere is about to be volatility in the market. You also need to realise that some trading sessions offer more volatility than others. The New York session tends to feature the biggest market movements so it is advisable you sync your trading times with the New York session.

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