That is still all that could possibly be needed for me to make a lot of cash amid the late spring. Obviously, that is only a speculative. My real action relies upon how positive or horrible economic situations are at the time. That is to say, how would I hope to profit in the event that I take only two setups in a month? Remember however that my base hazard to reward to significantly consider a position is 3R.

That implies the benefit potential must be no less than three times the hazard. To the exclusion of everything else, I generally advocate utilizing the day by day time period. Be that as it may, I additionally exchange and show systems on the 4-hour time span. It also can offer profoundly solid signs in the event that you recognize what to search for.

Regardless of this, even the 4-hour diagrams can turn into a dangerous playing field amongst June and August. Amid this time volume goes away, which means choppier value activity and a considerable measure of uncertainty.

That puts you at a higher danger of succumbing to false breaks. From multiple points of view, the every day diagrams are six times more solid than the 4-hour time period.

All things considered, a full every day session is comprised of six 4-hour time spans. It additionally gives you the upside of seeing what occurs at the New York close before settling on a choice. That by itself is a sufficient motivation to adhere to the day by day outline. I now and then utilize what I jump at the chance to call a visually impaired passage. Nonetheless, amid times when volume is light, I evade this kind of section.

Rather, I quite often sit tight to confirm value activity before thinking about a section. It gives me that additional layer of trust in the setup, which is basic in low liquidity situations. As said above, I support the stick bar and immersing bar. The way to having the capacity to benefit from them lies in the level at which they frame.

That is genuine paying little heed to regardless of whether showcase volume is lighter than normal. These are only a couple of basic approaches to enable you to overcome the moderate summer a long time as a Forex merchant.

One of the most exceedingly awful things you can do is give back every one of your benefits since volume has become scarce.

Keep in mind forget that, from a specialized point of view, the volume is the thing that manages regardless of whether a market will be dependable.

This gives you a considerably more prominent possibility of keeping any benefit you made amid the primary portion of the year. The liquidity in one day by day candle is considerably more noteworthy than any lower time allotment. In any case, remember that even the day by day time period can wind up questionable amid the mid year.

Consequently, I get a kick out of the chance to sit tight to confirm value activity, for example, a stick bar or overwhelming example before taking an exchange.

Do You Want to Learn How to Trade Forex? Just contact us, and you will convince yourself! I consent to the personal data retention and processing, according to the new GDPR policy. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Copyright VorteXz Signals.

All rights reserved. You should consider whether you can afford to take the high risk of losing your money. Forex trading involve a real risk of loss. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss. That is still all that could possibly be needed for me to make a lot of cash amid the late spring.

Obviously, that is only a speculative. My real action relies upon how positive or horrible economic situations are at the time. That is to say, how would I hope to profit in the event that I take only two setups in a month? Remember however that my base hazard to reward to significantly consider a position is 3R. That implies the benefit potential must be no less than three times the hazard.

To the exclusion of everything else, I generally advocate utilizing the day by day time period. Be that as it may, I additionally exchange and show systems on the 4-hour time span. It also can offer profoundly solid signs in the event that you recognize what to search for. Regardless of this, even the 4-hour diagrams can turn into a dangerous playing field amongst June and August.

Amid this time volume goes away, which means choppier value activity and a considerable measure of uncertainty. That puts you at a higher danger of succumbing to false breaks. From multiple points of view, the every day diagrams are six times more solid than the 4-hour time period. All things considered, a full every day session is comprised of six 4-hour time spans. It additionally gives you the upside of seeing what occurs at the New York close before settling on a choice. That by itself is a sufficient motivation to adhere to the day by day outline.

I now and then utilize what I jump at the chance to call a visually impaired passage. Nonetheless, amid times when volume is light, I evade this kind of section. Rather, I quite often sit tight to confirm value activity before thinking about a section.

It gives me that additional layer of trust in the setup, which is basic in low liquidity situations. As said above, I support the stick bar and immersing bar. The way to having the capacity to benefit from them lies in the level at which they frame. That is genuine paying little heed to regardless of whether showcase volume is lighter than normal.

These are only a couple of basic approaches to enable you to overcome the moderate summer a long time as a Forex merchant. One of the most exceedingly awful things you can do is give back every one of your benefits since volume has become scarce.

Keep in mind forget that, from a specialized point of view, the volume is the thing that manages regardless of whether a market will be dependable. This gives you a considerably more prominent possibility of keeping any benefit you made amid the primary portion of the year. The liquidity in one day by day candle is considerably more noteworthy than any lower time allotment.

In any case, remember that even the day by day time period can wind up questionable amid the mid year. Consequently, I get a kick out of the chance to sit tight to confirm value activity, for example, a stick bar or overwhelming example before taking an exchange.

Do You Want to Learn How to Trade Forex? Just contact us, and you will convince yourself! I consent to the personal data retention and processing, according to the new GDPR policy. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Copyright VorteXz Signals. All rights reserved. You should consider whether you can afford to take the high risk of losing your money.

Forex trading involve a real risk of loss. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.

LiteFinance Global LLC does not provide brokerage services in your country. org website, you confirm that access to all programs and services is provided to you for informational purposes only, without the offer of registration. Summer is considered to be the hardest trading period with the exception of Christmas holidays.

At this time, institutional investors leave the market to go on vacation, which is why liquidity is down, volatility is up or down due to the lower trading volumes? Price behavior is less predictable. However, this is how it works in theory, and reality is often different. Does the volatility and liquidity of markets really change in summer? Do asset quotes depend on the seasonal factor?

Are there cyclical seasonal patterns in the instruments of different markets? You will find answers to these and other questions in this review. Summer is time for vacations, sea, and sunbathing — anything but work. In the summer, people want to travel, enjoy different types of leisure activities, forget about work and emotionally exhausting trading, and spend time with family and friends at least for a little while.

Does seasonal factor affect the assets? Traditionally, trading in summer is considered to be completely different from other periods and has a pronounced seasonal nature:. It seems to me that these statements are at least partially true. If you owned large capital and understood that small traders are reducing volumes in the summer, would you not be tempted to push the quotes in the right direction? Moreover, a vacation does not cancel the possibilities of algorithmic trading with the help of advisors.

If we talk about fundamental analysis, its factors not depend on the season. For example, oil, which in spring, autumn and winter is heavily dependent on OPEC policy and the heating season, was under pressure from geopolitical factors this summer due to the trade wars between the USA and China, sanctions against Iran, etc. Is there a difference between trading in summer and other seasons? I will try to express my own opinion, which is different from most theories, and back it up with some statistics.

This analysis may be of interest to traders who prefer medium- and long-term strategies, keeping positions in the market from several weeks to several months.

Scalpers can easily earn on minute trades at any time of the year. Most onlineresources describe summer as the most unpredictable trading period, comparing it only with the New Year holidays. At this time, small speculators and some large traders whose plans are unknown are the only ones that remain on the market. Hence the constant unpredictable breakouts of resistance and support levels, prolonged drawdowns, etc.

This is a very controversial issue, especially if we analyze individual instruments on different markets. I suggest that we start with the most interesting instrument in terms of analysis — crypto currencies. Is summer a period of higher volatility and lower trading volumes?

This definitely does not concern crypto currencies. According to Google Trend, the number of Bitcoin requests began to grow sharply since the beginning of June and has already reached the February level. It may be far from the peaks of December , this is still a clear example of the growth of investor interest in the summer.

After a relative flat in , the cryptocurrency market sort of warmed up: capitalization increased almost 2. Moreover, the growth dynamics in the three spring months amounted to During June, the market capitalization rose to Although was followed by a fairly strong correction, such a significant growth in volumes demonstrates the activity of large investors who were able to shake up the market and give it an optimistic upward push.

This chart shows the change in capitalization over the last year. It shows that price bursts in either direction appeared mostly in the summer and to a lesser extent in the autumn. A noticeable decline in capitalization occurred in winter, but this does not change the fact: trading on the crypto currency market is active both in winter and in summer. The falling trend occured closer to the end of the year, but the example of December shows the main factor is not season but rather investor interest, i.

fundamental factors and speculative capital. Unlike stock or commodity markets, the fundamental factor here can give the market a boost at any time, since it is not connected to the annual accounts of companies or the growth in demand for an asset during the heating season. Volatility is another matter — it really does have an effect on crypto currencies in the summer.

But where does it come from? With crypto currencies it is different: the collapse of the market in July is explained quite simply: big business gave the market a push, BTC and other altcoins with it passed the psychological mark of 10 thousand dollars and rushed up. However, investors remember what their blind belief in endless growth brought them. Let us compare the price behavior, as well as the highs and lows for each season as a percentage relative to each month.

The figures are approximate a small error margin is acceptable since I was to going for an ideal comparison, I just needed to show the comparative seasonal dynamics of quotes. The data is for the last 6 seasons and June This period can be extended if necessary. The first thing that strikes the eye is that summer is not the turning point for investors. The turning point came after the peak growth phase in the winter of We also see comparatively similar percent deviations of the highs and lows.

Moreover, no anomalies were observed in the summer period in comparison with other seasons. Starting from things are different: the trend stops falling and goes into flat the flat is clearly visible when analyzing the period from January 1, to April 30, , then growth begins. Trading on the crypto currency market has a pronounced cyclical nature. InteTraders are most active in the first months of the year.

During this period, there is an increase in volatility. By the end of the year, activity decreases. Summer is as active as any other period for crypto currencies. Seasonal analysis allows us to see relative patterns of growth or decline, based on which we can assumed that:.

In winter, both a sharp price surge and a flat are possible. It all depends on large investors and news. We can clearly observe cyclical nature and psychological regularities on the crypto currency market.

While technical analysis helps to identify strong psychological resistance and support levels, statistical analysis will help to identify patterns of the market. Commodity assets are unique because in addition to geopolitics and speculative factors, their prices are greatly influenced by direct demand from industry. It primarily concerns oil, gas, metals gold, silver, platinum, copper, aluminum, etc.

And to some extent, seasonal factor can play a role. Let us turn to statistics again. Question: what is volatility? Theory says that this is a range of price fluctuations over a period of time. Therefore, to compare volatility in a given season, as with crypto currencies, we should analyze a long-term period without taking intramonthly fluctuations into account local. The price fluctuate in the range of dollars a dozen times in both directions, we still consider this a flat, and these fluctuations are only of any interest to scalpers.

Conclusion: in spite of the fact that in summer the oil reserves usually grow due to reduced demand, the price does not tend to decline, and there is no reason to speak of high volatility compared to other periods.

Which factors influence the quotes? At the beginning of the year, the balance of production and consumption is more influential, but in the middle of the year, investors are more responsive to geopolitical factors. However, the pattern is not consistent.

But one can definitely say that seasonal factor does not play the most important role in the dynamics of the quotes. The exception is the chart of quotations of natural gas. Unlike oil, it is not a strategic investment tool for investors.

It's hard to explain why - it just happened this way. Also, gas has no correlation with oil. Therefore, the local demand and supply directly affect the price. If you look at the 5-year chart, you can see the pattern: in most cases, sharp trend movements began in November - February, whereas in the middle of the year the price either continued the long-term trend that started or more often entered horizontal flat.

I suggest we look at the quotes of gold last summer. For the entire three months, the price confidently went down, continuing the trend that started in mid-April.

The end of this downtrend came in August, but I would not associate it with the autumn growth of business activity. If you look at the summer behavior of prices in previous years, you can see there is no regularity in the summer period. But the annual cycles are evident. In this screenshot, annual price peaks are clearly seen in December-January. In part, this can be explained by the fact that investors prefer to wait out the holidays in a safe haven asset. In other words, the seasonal pattern in the gold chart is visible, but this applies exclusively to the winter period.

It may not be that pronounced compared to other trend movementsbut it still should be taken into account by careful traders. Conclusion: the concept of seasonal factor is only applicable to gold when it comes to winter holidays. This instrument is fundamentally taken as an example to show that the seasonal factor still influences certain assets.

This chart for almost 10 years shows a clear pattern almost every year: pronounced peaks with a quick rollback to previous positions occur either in January-February green arrows or in July red arrows. A similar pattern is observed in the pork futures chart - there are usually similar peaks in June.

I will not go into the details of the reasons, just pay attention to the fact that you can earn on such cycles. Conclusion: seasonal factor is very pronounced in food assets, which may be related to their production cycle.

Remember however that my base hazard to reward to significantly consider a position is 3R. It shows that price bursts in either direction appeared mostly in the summer and to a lesser extent in the autumn. Most onlineresources describe summer as the most unpredictable trading period, comparing it only with the New Year holidays. Why do you need to study forex trading and how to learn trade forex? Is summer a period of higher volatility and lower trading volumes? Are there cyclical seasonal patterns in the instruments of different markets?

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