What You'll Learn in This Section:

  • Trading hours and liquidity differences between Forex and Crypto
  • Volume data: tick volume (Forex) vs actual volume (Crypto)
  • Volatility differences and what they mean for your risk
  • How to adjust indicator settings and timeframes for each market
  • Practical tips for Filipino traders trading both markets
  • Which market is better for beginners (honest answer)
  • How to adapt your strategies from Section 7 to both markets

8.1 Introduction: Same Tools, Different Playgrounds

You've learned a complete trading system using:

  • Moving Averages (trend)
  • RSI or MACD (momentum)
  • Volume (conviction)
  • Price structure (support/resistance)

The good news: These tools work on both Forex and Crypto. The indicators don't change. The principles don't change.

The reality: The markets themselves behave very differently.

🚗 Driving Analogy

You learned how to drive a car. The basic skills (steering, braking, accelerating) are the same whether you're driving a sedan or a pickup truck.

But:

  • A sedan (Forex) is smooth, predictable, easier to handle
  • A pickup truck (Crypto) is more powerful, handles rougher terrain, but requires more skill and caution

Both are vehicles. Both get you from A to B. But the experience is different.

In this section, we'll show you exactly how Forex and Crypto differ—and how to adjust your approach for each market.

8.2 Trading Hours and Liquidity

The first major difference between Forex and Crypto is when they're most active.

A. Forex: The 24-Hour Market (But With Peak Times)

Forex trades 24 hours a day, 5 days a week (Monday morning to Friday evening). But not all hours are equal.

📊 Forex Trading Sessions (24-Hour View)

Philippine Time (Manila) Reference

12AM3AM6AM9AM12PM3PM6PM9PM12AM
Asian (Tokyo)
London
New York
🌟 GOLDEN WINDOW
Asian: 8 AM - 5 PM Manila (Low volatility)
London: 4 PM - 1 AM Manila (High liquidity)
New York: 9 PM - 6 AM Manila (Strong trends)
Overlap: 9 PM - 1 AM Manila (MOST ACTIVE)

1. Asian Session (Tokyo)

  • Time: 8 AM - 5 PM Philippine Time
  • Active Pairs: USDJPY, AUDUSD, NZDUSD
  • Characteristics: Lowest volatility, slower price movements, quieter overall
  • Best for: Scalping or range trading (not ideal for beginners who want clear trends)

2. London Session (European)

  • Time: 4 PM - 1 AM Philippine Time
  • Active Pairs: EURUSD, GBPUSD, EURGBP
  • Characteristics: Highest liquidity (London largest Forex center), strong trends start here, high volatility
  • Best for: Trend-following strategies. THE session to trade if you can

3. New York Session (US)

  • Time: 9 PM - 6 AM Philippine Time
  • Active Pairs: EURUSD, GBPUSD, USDCAD, USDJPY
  • Characteristics: High liquidity, strong moves, clear trends
  • Best for: Trend-following and breakout strategies
The London-New York Overlap: The Golden Window

Time: 9 PM - 1 AM Philippine Time

Why it matters:

  • Highest volume of the entire day
  • Tightest spreads (difference between buy and sell price)
  • Clearest trends
  • Best trade opportunities

If you can only trade for a few hours a day, trade during this window.

Weekend Gap: Forex Closes

Forex markets CLOSE on weekends.

  • Close: Friday 10 PM GMT (Saturday 6 AM Manila)
  • Open: Sunday 10 PM GMT (Monday 6 AM Manila)

Risk: Price often gaps (jumps) when market reopens if major news happened over weekend.

Best practice: Close all trades before Friday close or use very tight stops if holding.

B. Crypto: True 24/7 Trading (But With Peak Activity)

Crypto markets trade 24 hours a day, 7 days a week, 365 days a year. No weekends. No holidays. Always open.

But: Just like Forex, some hours are more active than others.

Peak Crypto Trading Hours

Most Active: When US and European traders are awake and active.

  • 9 AM - 5 PM EST (US business hours) = 9 PM - 5 AM Manila time
  • 2 PM - 11 PM GMT (European afternoon/evening) = 10 PM - 7 AM Manila time

Why these hours? Because majority of crypto trading volume comes from US and European traders.

Why 24/7 Can Be Dangerous

The problem: You can trade anytime—which means you might overtrade.

Beginners often think: "The market is always open, so I should always be trading!" Wrong.

Just because you CAN trade doesn't mean you SHOULD.

Best practice: Even in crypto, focus on most active hours (when US/Europe is awake). Trade during high-volume periods for better liquidity, clearer signals, less risk of manipulation.

Quick Comparison: Forex vs Crypto Hours

Feature
Forex
Crypto
Trading hours
24 hours, 5 days/week
24 hours, 7 days/week
Weekends
Closed (gaps possible)
Open (no gaps)
Peak activity
London & NY sessions (4 PM - 1 AM Manila)
US/Europe hours (9 PM - 7 AM Manila)
Best time (Filipinos)
9 PM - 1 AM (London-NY overlap)
9 PM - 5 AM (US daytime)
Quietest time
Asian session (8 AM - 4 PM Manila)
Asian night (1 AM - 9 AM Manila)
Practical Tip for Filipino Traders

Option 1: Trade in the evening (9 PM - 1 AM)

Captures London-NY overlap for Forex and US afternoon for Crypto. Most active period, best opportunities. Con: Late night, requires discipline.

Option 2: Trade during Philippine daytime

Fits normal work schedule. Con: Lower volume (Asian session for Forex), choppier price action, fewer high-quality setups.

Option 3: Swing trade on higher timeframes (4H or Daily) ✅

Don't need to watch charts all day. Check 1-2 times per day. Works around your schedule. Requires patience but fewer trades per month.

For most Filipino beginners, we recommend Option 3 (swing trading on 4H or Daily charts).

8.3 Volume Data Differences

We covered this briefly in Section 6, but let's go deeper.

A. Forex Volume: Tick Volume (Proxy)

  • What it shows: Number of price changes (ticks), not actual dollar volume
  • Why? Forex is decentralized—no single exchange has data on ALL trades
  • Is it useful? Yes, it's good proxy for activity
  • For trading: Treat as relative measure. Compare today vs yesterday, look for spikes

B. Crypto Volume: Actual Volume (But Varies by Exchange)

  • What it shows: Real dollar (or BTC) amount traded—accurate data
  • Exchange problem: Different exchanges have different volumes (Binance largest, Coinbase smaller)
  • What this means: Always use same exchange for consistency (recommend Binance)
  • Warning: Smaller unregulated exchanges inflate volume with fake trades (wash trading)—stick to Binance, Coinbase, Kraken

Practical Takeaway:

For Forex traders: Volume is relative tool. Focus on high vs low volume, spikes, confirming breakouts.

For Crypto traders: Volume is accurate and reliable (on major exchanges). Use confidently to confirm breakouts, spot accumulation/distribution, gauge market interest. Stick to one exchange (Binance) for consistency.

8.4 Volatility Differences: The Biggest Difference

This is the most important difference between Forex and Crypto.

📊 Average Daily Price Movement Comparison
~1%
Forex (EURUSD)
Typical Daily Move
~5-8%
Crypto (BTCUSD)
Typical Daily Move

Crypto moves 5-10x more in percentage terms compared to Forex

A. Forex: Lower Volatility, Smaller Moves

Forex major pairs (EURUSD, GBPUSD, USDJPY) move in small percentage increments.

Example: EURUSD trading at 1.1000 → A "big move" in one day: 1.1000 → 1.1100 (100 pips / +0.91%). That's less than 1% in a day.

Why is Forex less volatile?

  • Massive liquidity (trillions of dollars traded daily)
  • Stable economies (major currencies backed by governments)
  • Central bank intervention (governments stabilize currencies)

What this means for traders:

  • ✅ More predictable—trends are steadier
  • ✅ Lower risk of huge losses—price doesn't "crash" 20% overnight
  • ✅ Tighter spreads—easier to enter/exit trades
  • ❌ Smaller profit potential per trade—need leverage or larger position sizes

B. Crypto: Higher Volatility, Bigger Moves

Cryptocurrencies (Bitcoin, Ethereum, altcoins) move in large percentage increments.

Example: Bitcoin trading at $60,000 → A "normal move" in one day: $60,000 → $57,000 (-5%) or $60,000 → $63,000 (+5%). That's 5% in a day—5x bigger than typical Forex move.

Why is Crypto more volatile?

  • Lower liquidity compared to Forex (billions vs trillions)
  • Speculative market—driven by sentiment, news, hype
  • No central bank backing—no government intervention to stabilize
  • 24/7 trading—no closing bell to "pause" sentiment

What this means for traders:

  • ✅ Bigger profit potential—5% move with good position sizing = significant gains
  • ✅ More trading opportunities—bigger swings mean more setups
  • ❌ Higher risk—5% move against you = significant losses
  • ❌ More false signals—volatility creates noise, fake breakouts, whipsaws
  • ❌ Emotional stress—watching position swing 5-10% in hours is mentally taxing
Real Example: A Day in Each Market

Forex (EURUSD):

  • Opens: 1.1000
  • High: 1.1050 (+0.45%)
  • Low: 1.0960 (-0.36%)
  • Close: 1.1020 (+0.18%)
  • Range: 90 pips (0.81%)

Crypto (BTCUSD):

  • Opens: $60,000
  • High: $63,000 (+5%)
  • Low: $58,000 (-3.3%)
  • Close: $61,500 (+2.5%)
  • Range: $5,000 (8.3%)

Crypto moved 10x more in percentage terms!

Which Market Is Riskier?

Crypto is objectively riskier due to higher volatility.

But: Risk is relative to position sizing.

  • If you trade small position sizes in crypto (0.5% risk per trade), it's manageable
  • If you trade large position sizes in Forex with high leverage (5% risk per trade), it's dangerous

The key is risk management, not the market itself.

8.5-8.6 Indicator Adjustments & Risk Management

Indicator Settings: Same Tools, Minor Adjustments

Good news: Same settings work on both (RSI 14, EMA 20, MACD 12-26-9).

Nuance: Because crypto is more volatile, indicators behave slightly differently.

Indicator
Forex Behavior
Crypto Adjustment
RSI
Moves gradually, 70/30 zones reliable in ranges
Swings dramatically, frequently hits extremes. Focus on RSI 50 line in trends.
Moving Averages
MAs smooth, price respects closely
Price can overshoot MAs. Give wider stop loss room (1-2% vs 20 pips).
Volume
Tick volume (proxy), less dramatic spikes
Actual volume, massive spikes (5x-10x). Pay EXTRA attention—volume matters even more.
Timeframes
1H chart = standard pacing
15m chart ≈ 1H Forex. Crypto moves 3-4x faster.

Risk Management Differences

Risk Factor
Forex
Crypto
Position Sizing
Risk 0.5-1% per trade
Risk 0.5% per trade (start smaller)
Stop Loss
Tight stops work (20-30 pips)
Wider stops needed (1-2% of price)
Leverage
Brokers offer 1:100-1:500
Exchanges offer 1:10-1:125
Recommendation
DO NOT use leverage as beginner. Start with NO LEVERAGE (1:1). Once profitable 6-12 months, consider low leverage (1:5 max).

8.7 Which Market Is Better for Beginners?

The honest answer: It depends on your personality and schedule.

💱
Choose Forex If...
✅ You prefer steadier, more predictable price moves
✅ You want lower stress (smaller swings)
✅ You can trade during active hours (9 PM-1 AM Manila)
✅ You want to trade smaller amounts ($10-$100 possible)
✅ You value tight spreads and lower trading costs

Forex is like driving a sedan—smooth, stable, easier for beginners

₿
Choose Crypto If...
✅ You want bigger profit potential per trade (higher volatility)
✅ You can handle higher stress (5% swings)
✅ You want 24/7 access (trade anytime, even weekends)
✅ You're comfortable with higher risk
✅ You believe in crypto's long-term potential

Crypto is like driving a pickup—powerful, exciting, requires more skill

Our Recommendation for Filipino Beginners

Start with Forex for learning.

Why?

  • Lower volatility = easier to learn without getting wiped out
  • More forgiving for mistakes
  • Smaller position sizes possible (start with $50-$100)

Once you're profitable in Forex (after 6-12 months): Then try Crypto. By then you'll have solid risk management habits, emotional discipline, pattern recognition skills.

As a beginner, focus on ONE market first.

8.8 Adapting Your Strategies to Both Markets

Let's revisit the three setups from Section 7 and show how they work in both markets.

Setup A: Trend-Pullback Strategy

Forex (EURUSD, 1H)

  • EMA 20 + RSI + Volume
  • Pullback to EMA in uptrend
  • RSI drops to 40-50
  • Stop loss 20-30 pips below
  • Take profit at next resistance or 1:2 R:R

Works great in Forex ✅

Crypto (BTCUSD, 15m/1H)

  • Same setup, same indicators
  • Expect sharper pullbacks (dips harder)
  • RSI might drop to 35-40 (instead of 40-50)
  • Stop loss wider (1-2% instead of 20 pips)
  • Same confirmation approach

Works in Crypto ✅ (adjust stop width)

Setup B: Range-Reversion Strategy

Forex (GBPUSD, 1H)

  • SMA 50 + RSI
  • Clear range (2+ weeks)
  • Buy at support when RSI <30
  • Sell at resistance when RSI >70

Works great in Forex ✅

Crypto (BTCUSD, 4H/Daily)

  • Same setup, same indicators
  • Ranges shorter-lived (1-2 weeks)
  • Breakouts more common (watch volume)
  • When range breaks, exit immediately—explosive breakouts

Works in Crypto ✅ (ready for breakouts)

Setup C: MACD Momentum Strategy

Forex

  • SMA 50 + MACD + Volume
  • MACD crossover during pullback
  • Enter on confirmation

Works great ✅

Crypto

  • Same setup
  • MACD more crossovers due to volatility (more noise)
  • Filter carefully—only signals aligning with trend + structure

Works in Crypto ✅ (be selective)

8.9 Practical Tips for Filipino Traders

1. Start with Demo

Forex: IC Markets, XM, FXTM offer free demo. Crypto: TradingView paper trading, Binance testnet. Practice 3-6 months before real money.

2. Choose Regulated Platforms

Forex: IC Markets, XM, Exness (check ASIC, FCA, CySEC regulation). Crypto: Binance, Coins.ph, PDAX (BSP-approved).

3. Understand PH Tax Laws

Trading gains taxable in Philippines. Forex: income tax 5-35%. Crypto: consult tax professional. Keep records of all trades.

4. Manage Sleep Schedule

Trading 9 PM-1 AM? Get enough sleep after. Don't sacrifice health. Consider swing trading (4H/Daily) if late nights don't work. Trading tired = bad decisions.

5. Start Very Small

Forex: Start $50-$100 (or micro account with $10). Crypto: Start $100-$200. You WILL lose money learning. Better lose $50 than $5,000.

6. Use TradingView

Perfect for Filipino traders: works in browser, free plan sufficient, works on slow internet, covers both Forex and Crypto in one platform.

Quick Summary: Section 8
  • Trading hours: Forex 24/5 (most active London-NY overlap 9 PM-1 AM Manila) | Crypto 24/7 (most active US/Europe hours 9 PM-7 AM Manila)
  • Volume data: Forex tick volume (proxy for activity) | Crypto actual volume (real data, use Binance for consistency)
  • Volatility: Forex lower (~1% daily) steadier | Crypto higher (~5-10% daily) riskier
  • Indicators: Same settings work (RSI 14, EMA 20, MACD 12-26-9) but crypto generates more signals, adjust timeframes (1H Forex ≈ 15m Crypto)
  • Risk management: Forex risk 0.5-1%, tight stops 20-30 pips | Crypto risk 0.5%, wider stops 1-2% | Both: NO leverage as beginner
  • Which for beginners: Forex easier to learn (lower volatility, more forgiving) | Crypto bigger profit potential but higher risk | Recommendation: Start Forex, add Crypto once profitable
  • Strategies work on both: Trend-Pullback ✅ Range-Reversion ✅ MACD Momentum ✅ Just adjust stop width and timeframes
  • Filipino tips: Use regulated brokers/exchanges, start demo, understand tax obligations, manage sleep, start small ($50-$200), use TradingView

Practice Tasks

Task 1: Compare Same Setup on Both Markets
  • Open TradingView, set EURUSD 1H with EMA 20 + RSI
  • Find Trend-Pullback setup from past month, note entry/stop/profit in pips
  • Then BTCUSD 1H same setup, note entry/stop/profit in % or $
  • Compare: Which move bigger? Clearer signals? Easier to trade?
Task 2: Track Active Hours (3 Days)
  • Check EURUSD and BTCUSD at: 8 AM Manila, 4 PM, 9 PM, 1 AM
  • Observe when each market most active (biggest candles, clearest trends)
  • Write down findings
Task 3: Compare Volatility
  • EURUSD Daily: Measure average daily range (High - Low) over last 10 days, calculate % move
  • BTCUSD Daily: Same measurement
  • Compare: How much bigger are Bitcoin's daily moves?
Task 4: Journal Your Preference
  • Write: "Based on what I've learned, I prefer [Forex/Crypto/Both] because..."
  • "My concerns about [Forex/Crypto] are..."
  • "My plan is to start with [Forex/Crypto] and then..."
  • Clarify your decision
Excellent Work! 🎉

You now understand key differences between Forex and Crypto—and how to adapt your trading approach for each.

Most importantly:

You learned that the tools and strategies don't change—only the environment. Think of it like driving: you learned to drive (trading strategies), now you know difference between highway (Forex—smooth, predictable) and off-road (Crypto—rough, exciting).

Both are drivable. Both can get you to your destination. You just need to adjust your speed and caution.

What's Next?

In Section 9: Common Mistakes & How to Avoid Them, we'll cover:

  • Top mistakes beginners make with indicators
  • Psychological traps (FOMO, revenge trading, overtrading)
  • How to recognize when you're making these mistakes
  • How to correct them before they damage your account

You're almost at the finish line. Keep going! 💪📈