Best Times To Trade Forex
Best Times To Trade Forex i.e Foreign Exchange.
We all know that forex is a highly dynamic market with lots of price swings in a single minute. This characteristic allows you to enter the market many times a day and gain some profit from the trades.
You can easily find out an appropriate time to enter into the forex market when the activity or the volumes of transactions are the highest. When we consider the working hours of the market, we must remember three facts:
There are three major markets — London, New York, and Tokyo. The working hours are throughout the day - it starts from Sunday 5pm (EST) through Friday 4pm (EST). Like any other active markets, there are good times and bad times to trade in forex also.
Choosing to trade when the market is at its best can increase productivity and generate significant financial benefits. It will be wise to assume that trading intermittently throughout the day will produce the best results.
Forex Trading activities are found to be heaviest when major markets overlap. Statistics says, nearly two-thirds of New York activity occurs in the morning hours when European markets are also open. So you can figure out that at any given time, somebody somewhere in the world is buying and selling currencies.
Let’s find out quickly what are the overlapping timings:
* New York Market trade times: 8 A.M - 4 P.M EST (US SESSION)
* London Market trade times: 2 A.M - 12Noon EST (EUROPEAN SESSION)
* Great Britain Market trade times: 3 A.M - 11 A.M EST (EUROPEAN SESSION)
* Tokyo Market trade times: 8 P.M - 4 A.M EST (ASIAN SESSION)
* Australia Market trade times: 7 P.M - 3 A.M EST (ASIAN SESSION)
Without a doubt these are the best times to trade since the sheer volume of trading that is happening will mean that currency values move much quicker and more drastically than at any other time. If you are trading wisely at these times then you will be on course for some serious income!
U.S.–EUROPEAN OVERLAP: 8 A.M.–12 P.M. EST
The forex markets tend to be most active when the hours of the world’s two largest trading centers overlap. The range of trading between 8 a.m. and noon EST constitutes on average 70 percent of the total average range of trading for all of the currency pairs during the European trading hours and 80 percent of the total average range of trading for all of the currency pairs during U.S. trading hours. Just these percentages alone tell day traders that if they are really looking for volatile price action and wide ranges and cannot sit at the screen all day, the time to trade is the U.S. and European overlap.
EUROPEAN–ASIAN OVERLAP: 2 A.M.–4 A.M. EST
The trade intensity in the European–Asian overlap is far lower than in any other session because of the slow trading during the Asian morning. Of course, the time period surveyed is relatively smaller as well. With trading extremely thin during these hours, risk-tolerant and risk-loving traders can take a two-hour nap or spend the time positioning themselves for a breakout move at the European or U.S. open
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