The 2 AM EST High/Low
Although it is not recommended trying to catch the tops and bottoms of any move, there is always a high probability that the low and high of the day occur around 2am (0200) EST.
We are not saying here to open a random position around 2am EST as an attempt to catch most of the move on one particular day. What we are saying is that if you get your signal around 2am EST, consider scaling your trade up to longer time frames (as outlined in section 3).
As we learnt in lesson 1, UK generated the most volume when we separated volume by country. This is the same reason why there is always a high probability that the market makes the low/high of the day at 2am EST. Traders and investors start to trade aggressively at the beginning of the European session. Also at this time the Asian market is still open increasing the volume generated (Europe-Asian overlap lasts from 2am to 4am EST).
Take a look at the table below
As you can see, the range in pips is larger in the European session than any other session. There is also one important factor to be considered here: most of the moves of the European session are market driven while most of the moves in the American session are fundamental driven (news announcements). Most of the time, as the European session begins traders and investor are ready to trade big based on their expectations not because fundamental announcements. This is the main reason there is always a good possibility that the market makes the low or high of the day around 2am EST.