Is the Forex Moody? Trading & Trending Days
Some days are better for forex trading than others. I’m using the term “better” loosely here to introduce a concept known as a trading day in the online forex market.
Market movement can be partially explained by events that occur during each forex trading session (remember there are three sessions during each 24-hour period). Broadly speaking, then, each session can be categorized as either a trading day or a trending day, depending on the events that occur that forex trading session.
Forex Trading Days
A forex trading day is characterized by the following external events and conditions:
- No fundamental announcements (vauable forex information) are released during the session.
- Price movement is slow.
- Market movement (volatility) during the session creates a forex trading range of 60 to 90 pips.
- Prices close near the session’s opening price (the daily candlestick for a forex trading day would look like a doji, or a spinning top)
- Price movement during the session creates an upper bell curve or a lower bell curve, or prices move sideways (in any case the session’s closing price is near its opening price).
Sideways movement on a forex trading day
Lower bell curve on a forex trading day
Upper bell curve on a forex trading day
It’s good to know the difference between trading days and trending days when you are attempting forex trading. This concept will come in handy and will be referenced for specific types of forex trading strategies that will be different on trading days than trending days. The good news is, both scenarios can be extremely profitable 
Related posts:
- Trending Days in Currency Trading
- Trading Forex on a Trading Day
- Forex Catastrophe – Straddle Trading Whiplash
Tags: forex trading, lower bell curve, trading day, trending day, upper bell curve Posted in
Rapid Forex on 
Joe on 
Don W. on 
Amador on
March 14th, 2010 at 3:28 am
So, are there any examples how we can use it in our trading? These curves are great but we should look for entry points.
[Reply]
Rapid Forex
Reply:
March 14th, 2010 at 5:48 pm
Thanks for this comment. Yes, I’ll actually be posting examples about how to use this in trading in the next few blog posts. Even though this blog is becoming like a book, there’s still places where the ideas need to be cut off so each post isn’t 1,000, 2,000 or more words. It’s my intention to make all of this very useful for trading with plenty of examples
[Reply]