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SPECIAL TRADING TIMES
1. Around 11 am EST
The London market closes and traders in Europe are "going home" watch for sharp reversal around 11 am.
The runs are usually good for 20-30 pips. We need to pay attention to reversal candles at this point: hammer, doji, RR etc.
2. Last Friday of the month tends to have a lot of momentum happening - trade in the direction of the trend - do not trade counter-trend
3. First Friday of the month is a NFP day - Non-farm payroll report. This news is usually very violent; price goes up and down several pips per second. This is the day when MMTS 3 rules should be applied, or trading should be avoided. Yes, it is a day when profits can be made really fast, but if you are on the wrong side, you can loose pretty fast too. On top of this, there may be issues with getting the order filled due to extremely fast moving prices.
4. Last calendar day of the month - similar to the last Friday of the month day - trade in the direction of the trend
5. For these that trade in the evening, watch out for breakouts around 7 pm EST. It is the Japan session, and you will get good trades happening on the USD/JPY pair
6. The Canadian dollar has a very unique trading characteristic at the end of every month. USD/CAD tends to fall in the last week of the month with a 95 percent confidence level. This drop is predominately concentrated around the 24th and 25th day of every month.
Interested in knowing why this happens?
Canada is one of the world's largest oil producers. Its oil reserves are also second to only Saudi Arabia. Canada is also the top exporter of oil and other petroleum products to the United States, making the US dollar-Canadian dollar exchange rate especially correlated to energy prices and related money flows.
It is not surprising that the movement of the Canadian dollar is especially sensitive to end-of-month oil contract settlement. More specifically, it is well-known that oil futures settle in the final week of every month.
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