I’m having trouble figuring out what time frames are best to trade these two currency pairs in:
GBP/JPY and GBP/USD
Also, I’m trying to get my mind around this concept…
I understand that when both markets are open at the same time there is more volume and thus providing a better chance to make some money.
What I don’t understand is which currency pairs would be affected when the respective market times are open. On the image I’m going to provide at the bottom I have 4 different time frames.
My guess that the diagram there only accounts for GBP (London) USD (New York) JPY (Toyko) AUS (Sydney). Thus it is an incomplete diagram. And in actuality there are many more colored bars to be accounted for. Meaning that for every currency there is an open and close time. (Question in statement)
Now, when the Tokyo session is open then the JPY currency would be moving and the GBP is not. Does that mean that only the Yen would be moving? Now doesn’t that mean that it’d be easier to pinpoint where a trade is going because there is only one variable?
This other question here is to better understand the way the charts creates data… Well, my entire inquiry here is: How does the movement of a market create the images I see on my charts? What kind of move would create a doji, a spinning top, a series of downward candles, a series of upward candles?
To reiterate:
Are there only 4 time frames for all the currencies? Or does that diagram only account for when those 4 currencies are open?
More Volume creates more movement. But when one currency is open and the other is not, does that make the charts more predictable?
How does the Movement of the Market create those candle patterns? ex. Does one currency go up while the other goes down to create a spinning top?
