MOST VOLATILE TRADING DAYS
1) Last Friday of the month. Every Friday is a wild card because traders like to clear up their desks before the weekend. Last Friday of the month especially unpredictable because it’s Friday AND close to the end of the month when the brokerage needs to balance its books.
2) Last day of the month. If market makers didn’t meet their quotas or profit targets by the last Friday of the month, this is crunch day. Very easy to pick the wrong pair and give back a big chunk of your profit on this day.
3) NFP Extreme Volatility , Expect massive trap moves and or whipsaws
4) FOMC This one is discretionary since it only comes up every 6 weeks. I do not like to get caught in a whipsaw, but if the broker’s intentions are crystal clear, then I will weigh in with a small position. I do not need FOMC to make my bank.
5) Wednesday of a NFP week Extreme Volatility , expect reversals and major news events!
Use the Forex Factory news calendar to know exactly when high impact events like NFP will occur.