This is a quick post regarding one of our research on GBPUSD. We mapped the HOD (high of day) from each day starting from the 1st of March 2017 up to the 28th of February 2018. All hours are in GMT format.
- There is a clear pattern of the hours of the day during which the HOD appears on GBPUSD: there are high chances of the HOD to occur between 7:00 and 12:00 GMT or between 15:00 and 17:00 GMT. These timeframes are the ones with the most activity on this instrument.
- There are certain hours of the day which are very unlikely to host the HOD
- As the price develops over the course of one day, we get better chances of spotting the HOD by eliminating what happened up to that hour of that specific day.
Future development ideas
- combine this research with an analysis on previous day’s high
- refine this research by calculating the chances of the HOD to occur at a certain hour by taking into consideration the price evolution of the day up to that moment
- refine this research by taking off the news days, the days after a high impact news etc