Why is the fx market very slow this January? | Forex Factory

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Why is the fx market very slow this January?

  • #1
  • First Post: Feb 1, 2011 2:31am Feb 1, 2011 2:31am
Why is d fx market very slow this january? It continued @ the same pace on the 1st month of February. I need an explanation from experienced traders. Is it how it is always slow in January?
  • #2
  • Feb 1, 2011 2:37am Feb 1, 2011 2:37am
Quoting kenny123
Why is d fx market very slow this january? It continued @ the same pace on the 1st month of February. I need an explanation from experienced traders. Is it how it is always slow in January?
which pair?
  • #3
  • Feb 1, 2011 3:11am Feb 1, 2011 3:11am
Quoting microsuck_36
which pair?
Almost all the pair. I want to trade the break of support and resistance that can last for weeks, but always see that it doesn't last for long, compared to December
  • #4
  • Feb 1, 2011 3:17am Feb 1, 2011 3:17am
Quoting kenny123
Why is d fx market very slow this january? It continued @ the same pace on the 1st month of February. I need an explanation from experienced traders. Is it how it is always slow in January?
many major participants and their employees on holiday, so are their customers multiply that and you can see why general liquidity can be lower than normal.

been some nice movements in the last week things are picking up IMO.
  • #5
  • Feb 1, 2011 3:38am Feb 1, 2011 3:38am
I see. Thinks are picking up this week. It shows I still need to be patient
  • #6
  • Feb 1, 2011 4:31am Feb 1, 2011 4:31am
Quoting >Apocalypto<
you can see why general liquidity can be lower than normal.
Good point, on the subject do you know of any indicator of liquidity? The received wisdom is that the information is not generally available but I did wonder if the rate of tick change for instance may give some crude indication.
  • #7
  • Edited 5:31am Feb 1, 2011 5:11am | Edited 5:31am
Quoting RandomOne
Good point, on the subject do you know of any indicator of liquidity? The received wisdom is that the information is not generally available but I did wonder if the rate of tick change for instance may give some crude indication.
Great question RandomOne, in terms of daily volatility I work off a rule i picked up, of 40 pips in the daily range from NY close to 2 hours from London open. If the range from high to low is under 40 pips no trading till it's 40pips, over it trade. For the end of the year I work roughly off calendar dates. Stop on the 20th Dec return on the 20th of Jan.

Good Trading......
  • #8
  • Feb 1, 2011 6:01am Feb 1, 2011 6:01am
Quoting >Apocalypto<
Great question RandomOne, in terms of daily volatility I work off a rule i picked up, of 40 pips in the daily range from NY close to 2 hours from London open. If the range from high to low is under 40 pips no trading till it's 40pips, over it trade. For the end of the year I work roughly off calendar dates. Stop on the 20th Dec return on the 20th of Jan.

Good Trading......
Interesting, seems a bit like the "sell in May and go away" and "trend is your friend" sayings in that general rules obtained from experience. I will have to analyse my back-test results to see if could give me an improvement, thanks for the idea.

My suggestion was based upon the observation that the price changes less often at times you would expect to have less liquidity and therefore if you could count the number of changes in the last time period you could get a rough indicator of liquidity.
  • #9
  • Feb 1, 2011 6:23am Feb 1, 2011 6:23am
Actually December was a too fast a month that every thing looks slow now.
.
  • #10
  • Feb 1, 2011 6:03pm Feb 1, 2011 6:03pm
EURUSD has been a great pair to swing trade and ride trends in Jan/Feb - from my system (although haven't started trading it until this last week), from 4 Jan there have been 3 x 350pip runs from entry to exit and a new one is just on the way, currently at 150pips. When I become a member I would like to start up a diary showing this system - helping me to keep disciplined as well as hopefully providing some interest for others.

GBPJPY has been exceptionally quiet in the past year and especially last 3 months. Used to have an average daily range of 250+, currently 118. EURUSD is actually better at 141.

It does really depend on pair you're trading and style of trade.

Kind regards

Doug
  • #11
  • Last Post: Feb 2, 2011 2:35am Feb 2, 2011 2:35am
Quoting nasir.khan
Actually December was a too fast a month that every thing looks slow now.
.
December was too fast. I realised than when I sold GBP in December, it fell heavily to my greatest surprise. But usd chf has been finding it hard 2 break the support in January
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