Many speculate, the month of August is reduced in liquidity/volume.
I would also add November, December, January.
Many speculate, the month of August is reduced in liquidity/volume.
I would also add November, December, January.
1 Attachment(s) July: A Positive Month for USD/JPY
One of the strongest examples of seasonality is the one in http://www.investopedia.com/articles...easonality.asp, which can be seen at Figure 1 below. In 80% of the samples (or eight out of the previous 10 years), USD/JPY stopped the month of July greater than where it began. It is hard to pinpoint an specific reason behind why USD/JPY will behave this way in the month of July, though it could be associated with the end of the first quarter at Japan or even the beginning of the second half of the year at the U.S.. Either way, this case of seasonality is extremely robust and one that is worth keeping in mind if you find any brief USD/JPY trades during the month of July. The presence of seasonality can encourage you to take a smaller-than-usual brief position or to prevent longer term brief USD/JPY transactions during this period.
1 Attachment(s) August: USD/JPY Gains Made in July Are Frequently Erased
There is also a strong case of seasonality in USD/JPY during the month of August. As you can see in Figure 2, below, a fantastic section of the gains earned in July were erased in August. Actually, a look at other yen crosses quickly reveals that in a http://www.investopedia.com/terms/c/calendaryear.asp August tends to be the strongest month for its Japanese yen across the board. To put it differently, other currencies like the U.S. dollar, euro and British pound have a powerful tendency to fall against the yen in August.
1 Attachment(s) May: A Very Negative Month for Your USD/CAD
For http://www.investopedia.com/terms/fo...rency-pair.asp, the Most Powerful case of seasonality is at the month of May. In eight out of their past ten years (between 2000 and 2009), the Canadian dollar rallied against the U.S. dollar that month. The only explanation for this price pattern would be that the seasonality in oil prices. Canada is one of the world's largest oil producers and therefore Canadian businesses tend to be very sensitive to the price of oil. The trend for oil prices to climb throughout March and April might have boosted the profitability of Canadian companies, leading to seasonal improvements in economic data.
1 Attachment(s) January: A Negative Month for EUR/USD
Examples of seasonality may also be found in other http://www.investopedia.com/articles...easonality.asp like the http://www.investopedia.com/terms/fo...rency-pair.asp as well as the http://www.investopedia.com/terms/fo...rency-pair.asp. The behaviour of this U.S. dollar against the euro in the month of January, as an instance, shows strong seasonality. In seven from the past 10 Decades, the U.S. dollar rallied from the month of January. The rationale we typically find this behaviour is due to the fact that businesses and funds have a tendency to repatriate their money back to their local country at the close of the year to dress up their balance sheets. In the beginning of the year, cash is once more sent abroad for new investment functions. Because everyone begins with a blank slate as far as profits and losses move, their principal focus is to initiate new positions. The U.S. market is one of the most liquid markets in the world, which explains why a lot of the investment cash ends up there. In the case of this NZD/USD, the currency pair has climbed eight from the past 10 years in the month of December.
example Open the monthly chart and view in candle stick.Originally Posted by ;
You'll be able to determine which month using really modest candle?
Do some quick
statistic month over every years from the chart.
my 2c
My beloved friend,
No this is not what I ask for, length of bar does not indie quantity of market and volatility!!!
Hi yyc196,
Are the using seasonality patterns for your own trading??
Market conditions vary from one month to the other. Some months may be very volatile due to particular news and events and several additional months comes with little volatility. That is why its often said that Forex egies operates in volatile markets and the trader makes money whilst alot of trending egies turn losing transactions in choppy markets
To track the volume of trading, just refer to this calendar and other economic events happening. The events across a country will affect the currency of the country
Evaluate our trading activities is the best way we could have more leverage learn from our experiences. I'm sure that everybody who will succeed are the ones who can understand from his own expertise so that it can be powerful with what he's doing.
Posting Permissions
Reply With Quote