Chapter 14 – Market Cycle


Forex Market moves in a predictable cycle on a daily basis. It is as your local traffic, where you’ll have traffic jam during certain hours in a certain direction flow, and other hours at the opposite direction. If we can predict market direction during this cycle, we will have an advantage that most traders don’t have. It is like having local traffic radio on while driving, letting you know where are the accidents and delays, so that you can choose the least traveled road.

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Market generally moves in the following manner:

5:00pm ~ 12:00am EST Ranged market
12:00am ~ 2:00am EST Market prepare to breakout
2:00am ~ 3:15am EST Market reverse
3:15am ~ 5:00am EST Market Trend Re-Establish
5:00am ~ 7:00am EST Market Trend Continuation
7:00am ~ 8:15am EST Market reverse
8:15am ~ 9:00am EST Market Trend Re-Establish
9:00am ~ 9:30am EST Market Minor Reversal
9:30am ~ 11:30am EST Market Trend Re-Establish and Continuation
11:30am ~ 12:30am EST Market Minor Reversal
12:30pm ~ 5:00pm EST Market Ranged Continuation

 

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About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

Comments

  1. darth crane says:

    Great information. I believe fundamentals are the way to go in FX. To gauge strength Equity’s have indices, commodities have futures and FX has fundamentals.

  2. Clement says:

    I like Henry a lot because he always hits the nail at the head. His write-ups are always concise . May God add to your blessings. I’m very grateful!!!

  3. Ismail Abdul-Aziz says:

    Where can we find the download link of the book of News Profiteer.pdf of Henry Liu?

  4. Stephen says:

    When creating this market cycle chart, were you historically looking at a 5min time frame to come up with the graph? Can you please explain how the red and green lines were established? Thanks

    • Stephen, the time frame is not considered for the market cycle chart. The green and red lines simply represent the ranges (green: upper range, red: lower range).

      • So to look at Midnight to 2 am EST where the market is ready to break out, the Green line says that by 2Am Historically the move to the upside will be over and at around 2am we should be starting to look to exit a long trade and look for signs of a reversal. Correct? Thanks

  5. oyedeji muyiwa says:

    Hello kelvin, am still new in forex trading so what is the best time frame to look out forin order to use market cycle and the best pair of currency.Thanks

  6. The timings given on the PDF and the one’s on the website are different. Does it mean that these timings keep changing?

  7. oyedeji muyiwa says:

    Hello Kelvin, thanks for this winderful info about the forex.please i will like to know if these market
    cycle normally occur during all trading session.or just a few, if yes please shed light on those session.Thanks.

  8. Kelvin, thanks for a wonderful article. I think you have a typo error. Shouldn’t the last minor market reversal time be up to 12.30 pm EST instead of 12.30 am EST?

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