Forex Trading Best Time To Trade the Market:
Time plays significant role in life. Knowing when to trade Forex is as important as to know how to trade and what to trade. As Forex market remains open 24 hours a day for five and half days in a week, the facility to trade whenever you want is one of the greatest advantages of the foreign exchange market but traders should know that some hours of the day are more suitable for trading than others. In order to plan time-efficient and effective trading strategy, you must know which hours of the day are best for trading? Forex trading has three major Forex sessions namely London, Tokyo and New York. The Tokyo trading session opens first followed by London and New York.
The best hours for trading are those when trading sessions overlap because during this time the volume and activity are more as compared to other hours of the day. The foreign exchange market is most active when the two largest trading centers of the world overlap. The best time for trading is between 13:00 and 17:00 GMT which is the overlapping period of European and the US markets. The next favorable time for currency trading may be during the overlapping session of European and Tokyo markets which is between 7:00 and 9:00 GMT.
Trading time also depends on the currency exchange style. For example, range trading generally works better during off hours but breakout, momentum and trend trading strategies work better when the market is liquid and active. The Forex traders who want to do range trading, the best time to trade is the time between different trading sessions or the calm period before the market closes. The best time for momentum and trend trading is generally after the release of economic data. The best time for breakout trading is when the economic data is released and the online trading session opens.
The best time to trade Forex depends on your schedule and trading style. Working hours in Sydney is best time for range trading. If you want to trade after work then you have to look breakouts when the London trading session opens. If you are a night owl, the best trading hours for you are the overlapping time between the London and New York session.
If you have a job that permits you to check the charts periodically, the best time for currency trading is between 8:00am to 12:00pm EST which is the overlap session of London and New York. Both New York and London sessions are excellent time for currency trading, no matter where you live. The Asian trading session is the least volatile session. If you are searching for big moves, you have to wait until trading starts in London at around 3am EST.
Sundays are not suitable for trading because the movement is very low. The best days to trade are Tuesday, Wednesday and Thursday. Friday provides good opportunities for trading up to 12pm EST when London closes. Monday provides lower trading ranges but it does not mean that you should avoid Forex trading on Monday.
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