Best days to trade

[SanMiguel]

Best days to trade
Supposedly, the worst days and times to trade are Monday morning during London session and all of Friday.
Why is this?
Also, why does the price fluctuate so much during the morning sessions?

 

[Strangelydifferent]

Hi
I've no idea, but I think its worth being aware of. Checkout this rather technical article: http://www.fma.org/Chicago/Papers/IntradayVolatilityV10a.pdf - suggests that volatility is heightened in many markets (stocks, bonds, globally) at each end of the trading day.
Cheers

 

[Rhody Trader]

In markets where there are defined opens and closes (like stocks) the greatest volume and volatility is almost always at the open (new trades coming in) and the close (day trades getting closed). This tends to be exaserbated on Monday and Friday because of coming off and going into the weekend.

 

[Strangelydifferent]

Ok, that makes sense for the volume but don't understand the volatility side of it.

I'm sure I am missing a trick here but this is how I see it:
In the cases you have described the pressure in the morning is buying and in the afternoon it is selling. In a market with market makers there doesn't have to be a matching seller/buyer and so I guess the trends really are buying and selling respectively. So I don't see why the market should be more volatile when the tendency for volume to increase follows a historical pattern.

Any inspiration much appreciated!
Duncan

 

[N Rothschild]

Saturdays are good

 

[shadowninja]

Saturdays are good

Sundays can be good on FX.