Impersonating each time segment of the foreign exchange market as four blood types

“When it reached this time, the market movement suddenly changed!”

“Why does it suddenly reverse even though there are no economic indicators released?”

Have you ever thought so?

These are common phenomena when trading FX. Because “the traders’ expectations differ in each time zone.”The foreign exchange market conducts 24-hour trading, and it is attractive that you can trade at any time. But just trading in every time zone the same way won’t make you successful. Especially for scalping, you need to be conscious of the time zone you are trading in.

Therefore, we have categorized and personified the price movements of each foreign exchange market time zone by blood type to make them easier to imagine.

I hope this will be helpful for people who are about to start FX or those who are already trading FX and want to try scalping.

≪Type A≫　【Tokyo Time 9:00–15:00】

It hardly gets volatile and tends to stay quiet. It is very indecisive and passive (lacking a sense of direction and volatility), so it’s not suitable for scalping. It does not push to new highs or new lows, so taking a trend-following approach is difficult; if you do scalping, it would be contrarian.

Scalping　×

Direction sense　　　×

Volatility calmness　◎

Volatility　　　×

≪Type AB≫　【European Time 15:00–24:00】

The personality changes from day to day (some days are volatile, others are quiet), so this is hard to predict. On volatile days, it may become positive at one moment and suddenly negative the next. It may even rise to new highs and then turn back to new lows. Conversely, on non-volatile days, the direction is unclear. However, there is volatility even on those days, so scalping is easier than during Tokyo time.

Scalping　△

Direction sense　　　△

Volatility calmness　△

Volatility　　　○

≪Type O≫　【U.S. Time 21:00–6:00】

It is a forward-driving, headlong market. It moves in the direction you decide, so there is a sense of direction and volatility, but that holds mainly in the first half; in the second half it quiets down. Movement lasts until around 2 or 3 o’clock, and later times may see price jumps, but more often it becomes quiet again.

Scalping　○

Direction sense　　　○

Volatility calmness　○

Volatility　　　△

≪Type B≫　【European & U.S. Time 21:00–24:00】

Very active and do not pay much attention to small things. The overlap of European and U.S. markets during this time is FX’s golden time, and the day’s highs and lows are usually made during this period. However, it also coincides with the release times of major U.S. economic indicators, so be careful as it can get very volatile. There is direction and volatility, so both trend-following and contrarian approaches are feasible, making it ideal for scalping.

Scalping　◎

Direction sense　　　◎

Volatility calmness　×

Volatility　　　◎