Did you ever notice that sometimes when you get into trade the market seem to freeze? Or, for example, sometimes you are getting to your trading desk and you witness the price is not moving for next few hours?
Did you ever notice that sometimes when you get into trade the market seem to freeze? Or, for example, sometimes you are getting to your trading desk and you witness the price is not moving for next few hours?
Watch the market at a specific time
Just take a minute and think about it. If 70 percent of the currency moves are occurring only in 20 percent of the time, there is no need to look at the chart all day long?
This implies the following: in case you want to catch the biggest amplitude of the moves of the currency pair, you need only to be focused on the market for a specific amount of time. That being said, you will need to watch major Forex market sessions in case you are looking to day trade. As a fact, some of the sessions bring much more volatility. Moreover, they are more likely to generate big moves in the market.
Price trend can change on different time frame
The first implication of the 70/20 principle is related to Forex day traders. However, there is something about this rule that should be known by Swing traders.
When looking at a high time frame chart, swing traders can often spot a clear trend. Yet, a trend of a particular time frame does not imply that the price will continue to move in the same direction on lower time frames. I will show you more in this book.. buy now!
