One of the challenges about trading on the road is simply being away from the equipment that you are used to. For me that means I am on a 13inch MacBook away from my Dell XPS and four monitors…it’s a different set of tools and it demands that my trading change when I am viewing the market via my charts on much more limited data. The first thought is “don’t trade” and for most that is the most prudent choice. But what if you have a style that allow you to scan four charts at a time…for me that could be the five minute daytrading set ups that I use that I only really need three charts to do effectively. Alternatively I can scan the pairs I trade with four intraday charts — the 15, 30, 60, and 240 minute time frames — from a single 13in view and still maintain my market lookback. So it can be done.
…but that’s not really my issue with this trip.
You see, I’m in Seoul, Korea right now and will be in the country for nearly two weeks.
The other challenge I have to face is trading time. I’m not going to be able to trade the times that I am accustomed to because even though the 14 hour difference does not necessarily keep me from trading (I would simply trade late at night in Korea to trade my fave Frankfurt/London/New York overlap) but I do not foresee a lot of late night trading and will likely find myself looking at the Asian open and perhaps even the overlap between Asia, Europe, and the U.K.
So the issue is not whether I can trade but do I know the mannerisms of the hours that I will be trading. So I have to ask myself: Am I pipsmart in the ways of the Asian session? THAT will be what I have the adjust for the most.
I already know that when Frankfurt opens and then again when London opens, I will have to be ready for the volatility those major financial centers will bring. Take a look at the graph below. It’s a six month sample of the EUR/JPY:
Now I know we’ve looked at PowerStats before, but it still astounds me many traders (new and experienced) lack this sort of *pipsmarts*. (That’s what I call these time/price studies) and I don’t think it’s ignorance. I think there’s simply not enough discussion about how these ranges effect TIME, TRADE, and RISK management.
One of the luxuries I have by trading the Asian session open and the overlap between Asia and Europe is that I can look at some cross-rates. Since these are not pairs I trade with great frequency I must acquaint myself with their habits.
The jump in activity occurs at 6:00pm EST (“18” on the graph) and continues into 7:00pm EST (“19) only to drop off from there in terms of the average and range per hour. Notice the second jump at 1:00am EST and continuing into 2:00 and 3:00am EST? That’s the European and U.K. overlap volume.
Here’s a one month sample of the same pair:
This analysis takes the 24 hour day for me in the EUR/JPY and finds the best hours for me to focus on the pair as I trade from a part of the world I don’t normally trade from.
Greetings from Korea…and have a great week!
– the Queen