Don't complicate yourself so much.What you are seeing is the market doing your job: reacting to volume and news.If you are looking for simple rules, focus on operating when there is more activity, as in the openings of London or New York.That's where the real action is.If you do not have time to observe all day, just look at the graphics an hour before and after these openings.You will learn more in those moments than in whole days of slow sessions.
The majority of the jumps you see are by economic news.If you are not prepared to deal with them, or approach.These movements may seem attractive, but for a rookie, they are a direct path to lose money.Instead of looking for adrenaline, it begins to observe how the market behaves before and after ads.This way you will learn to interpret the patterns and decide whether or not you want to participate in such movements.
Those jumps are pure gold if you know how to handle them.Many traders live from operating exclusively during those volatility peaks.But are you ready to handle the risk?Probably not, if you are asking this.Take the time to learn how currencies move before throwing you.You will not want the market to give you a expensive lesson for not understanding how news and market openings work.
Understanding these movements is key to trading.They are not random, but they are not as easy to predict as you would like.Most of the time, they are driven by emotions of the market and unexpected news.Start with an economic calendar.That will help you identify when to wait for these movements.With practice, you will learn to anticipate and position yourself correctly to take advantage.
Do you really think the market moves "by chance"?That is a fantasy.Everything is related to the flow of orders, the news and the schedules in which the largest traders are active.If you see a jump, ask: What has just happened?Was there an ad?Did you open an important market?Investigate and you will find that there are patterns behind those movements.
It is good that you notice those movements.It is a great first step to understand how the market works.But, let's be realistic: operating during those peaks without experience can destroy your account.Start watching and analyzing how and why they happen.Thus, when you finally decide to enter those moments, you will do it with a solid strategy instead of jumping blindly.
A good strategy for beginners is to operate after those jumps, not during them.Most of the time, the market corrects after a large movement, and those corrections can be less risky.Instead of asking "why did the price jumped?", Ask "what will you do later?"That will completely change your perspective and help you operate more confidently.
Sometimes those movements are traps to catch new traders.Large market players use volatility peaks to manipulate the price, attracting buyers or vendors just before reverse the movement.That is why it is important not to react impulsively.Look, wait and make sure the movement is founded before launching.
These moments usually coincide with the overlap of the London and New York sessions.That's when the market has more volume, and it is natural that you see larger movements.If you want to take advantage of them, make sure you have a clear plan.Otherwise, those fast movements will leave you out before you can react.
It seems that you are looking for a magical formula, but the market does not work that way.Those jumps that you see are the result of many variables, from news to the volume of orders.My advice: stop looking for "perfect moments" and begins to build a strategy that works independently of those peaks.That is what serious traders do.
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