One of the most important aspects of trading the Forex market is to understand what drives price movement. We are often told that the market operates on a 24 hour basis 7 days a week – this is true but it does not mean that that you can apply any technique at any time and expect the same or even good results. Contrary to popular belief that the Forex Market is still driven by human behavior, volumes increase when the participants in the Forex market are physically at “the Office” working and volumes and activity dies down when those participants go home and sleep.
Many Forex traders focus so much on technical analysis that they ignore market behavior completely. The Forex traders who are successful are masters at understanding market behavior and then merely use appropriate technical analysis to enter the deal.
Market openings and closing can often impact and change the direction of trading. You, therefore, have to be aware of time of day factors which can impact forex trading. Most of the day’s highs and lows come from the Asian open, European open and close, and the US open and close.
A further study of the average hourly ranges of currencies crosses will confirm the importance of the market openings and closings by the increased volatility created at those times. This is very much important if you’re a beginner or an experienced trader.
Info Trivia Resource: https://fxfinpro.com