End of year volatility in forex, assessing the risk on the trade and how to deal with it

In the last forex trading session for 2020, I consider the volatility we are likely to see as volumes and liquidity drain away in the run up to the holiday season and how to take advantage. This is always a great time to be trading particularly in the forex markets as we often see sharp moves intraday on relatively light volume, so it is one where speed and lightness of touch are essential. In other words, great reversal opportunities and ones where the currency strength indicator for NinjaTrader, TradingView or MT4/5 really comes into its own highlighting when a currency is strongly overbought or oversold and so guiding you to the best opportunities. What we are looking for then is a pair where the strength of buying or selling is equal and so produces a strong reversal trend. Remember, for several trading you need to set a wider stop loss to allow for congestion before the reversal takes hold. So in summary, expect some excellent forex trading opportunities across all the timeframes driven by volatility and where reversals will truly deliver.

About Anna 2015 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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