How to Trade Forex During the Holidays - Part 3 | Vantage FX UK
- 11 years ago
Vantage FX (http://www.vantagefx.co.uk) look at what Forex traders should look out for during quieter periods in the holidays.
Volumes & Interest
In this video we look at what happens when volume drops off and then picks up. In this EUR/USD chart, we see a spike in volume when interest rates were cut. We then see volume increase again, which means more participants in the market, and the price rallies.
If we look at the volume and trendline, we see a correlation every time the price fell down to the supporting trendline. Once we see a price adjustment, we see the correlation exist again with volume picking up at each test of the trendline.
This isn't a fool-proof method, but it does show where the market moves when there is interest. As the two trendlines merge, we look to see which way we will see a break in price. Tomorrow is a holiday so we should see a thin market, resulting in a possible price spikes as there are less participants.
Volumes & Interest
In this video we look at what happens when volume drops off and then picks up. In this EUR/USD chart, we see a spike in volume when interest rates were cut. We then see volume increase again, which means more participants in the market, and the price rallies.
If we look at the volume and trendline, we see a correlation every time the price fell down to the supporting trendline. Once we see a price adjustment, we see the correlation exist again with volume picking up at each test of the trendline.
This isn't a fool-proof method, but it does show where the market moves when there is interest. As the two trendlines merge, we look to see which way we will see a break in price. Tomorrow is a holiday so we should see a thin market, resulting in a possible price spikes as there are less participants.