Lowest trading volume of the month

Hi All,

May I know which month has the lowest trading of the year?

Can someone let me know if there are any seasonal chart to track the volume of trading volume?

Thanks for reading my thread.

Shek

Many speculate, the month of August is low in liquidity/volume.

I would also add November, December, & January.

July: A Positive Month for USD/JPY
One of the strongest examples of seasonality is the one in USD/JPY, which can be seen in Figure 1 below. In 80% of the samples (or eight out of the past 10 years), USD/JPY ended the month of July higher than where it started. It is difficult to pinpoint an exact reason for why USD/JPY tends to behave this way in the month of July, although it could be related to the end of the first quarter in Japan or the beginning of the second half of the year in the U.S.. Either way, this instance of seasonality is very strong and one that is worth keeping in mind if you find some short USD/JPY trades during the month of July. The presence of seasonality may encourage you to take a smaller-than-usual short position or to avoid longer term short USD/JPY trades during this period.

August: USD/JPY Gains Made in July Are Often Erased
There is also a strong case of seasonality in USD/JPY during the month of August. As you can see in Figure 2, below, a good portion of the gains earned in July were erased in August. In fact, a look at other yen crosses quickly reveals that in a calendar year August tends to be the strongest month for the Japanese yen across the board. In other words, other currencies such as the U.S. dollar, euro and British pound have a strong tendency to fall against the yen in August.

May: A Very Negative Month for the USD/CAD
For USD/CAD, the strongest case of seasonality is in the month of May. In eight out of the last 10 years (between 2000 and 2009), the Canadian dollar rallied against the U.S. dollar that month. The only explanation for this price pattern is the seasonality in oil prices. Canada is one of the world’s largest oil producers and therefore Canadian companies tend to be very sensitive to the price of oil. The tendency for oil prices to rise during March and April could have boosted the profitability of Canadian companies, leading to seasonal improvements in economic data.

January: A Negative Month for EUR/USD
Cases of seasonality can also be found in other currency pairs such as the EUR/USD and the NZD/USD. The behavior of the U.S. dollar against the euro in the month of January, for example, shows strong seasonality. In seven out of the past 10 years, the U.S. dollar rallied in the month of January. The reason that we typically see this behavior is because many companies and funds tend to repatriate their money back to their local country at the end of the year to dress up their balance sheets. In the beginning of the year, money is once again sent abroad for new investment purposes. Because everyone starts with a blank slate as far as profits and losses go, their main focus is to initiate new positions. The U.S. market is one of the most liquid markets in the world, which explains why a lot of that investment money ends up there. In the case of the NZD/USD, the currency pair has risen eight out of the past 10 years in the month of December.

example Open the monthly chart and view in candle stick.
You can determine which month having very small candle?
Do some quick
statistic month over each years from the chart.

my 2c

My dear friend,

No, this is not what i ask for, length of bar does not imply volume of market and volatility!!!

Hi yyc196,
Are your using seasonality patterns for your trading??

Market conditions vary from one month to the other. Some months may be very volatile due to certain news and events and some other months comes with little volatility. That's why its often said that most trading systems works in volatile markets and the trader makes money while alot of trending strategies turn losing trades in choppy markets

To track the volume of trading, just refer to the calendar and other economic events happening. The events around a country will affect the currency of that country

evaluate our trading activities is the best way we could have more leverage again learn from our experiences. I'm sure that everyone who can succeed are the ones who can learn from his own experience so that it can be successful with what he's doing.