Best Times to Trade Forex: When to trade The Forex Market
Timing is one thing that would actually determine your success in the Forex market and that is why it is essential to find the best time to trade the Forex market, the best time with regards to activity and volume of Forex trades. This is what we call volatility, when the Forex market is volatile it is more liquid.
The most prominent Forex market is undoubtedly the US and the UK markets, accounting for more than half of the total Forex market transactions.
If it comes to major Forex markets, London , New York and Tokyo take up 75% of market activities. And Forex trading is the heaviest when the major markets sessions overlap.
Forex market overlaps are characterized by high liquidity and the probability of finding a profitable Forex trade is very high. This is because the volume of Forex trades is determined by the number of markets that are open and the times during which these markets overlap with each other.
Best Times to Trade Forex: When to Trade Forex Based Upon Volume and Activity
The best time to trade Forex is when markets or trading sessions overlap this is the time when markets are highly liquid because there are more participants, which means more volume and momentum to fuel Forex trends and trend breakouts. This also tends to be when economic data is released, providing the triggers for the movements in currencies
| European and U.S. Market Overlap: 13:00 - 17:00 GMT |
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The forex market is the most active when the two largest Forex trading centers in the world overlap. 80 percent of the total average of Forex trading usually occurs during U.S. and European Trading hours. Just these percentages alone tell day traders that they cannot sit in front of the screen all day; this time alone is enough to make a good profit, the best time to trade Forex is the U.S. and European overlap which is between 13:00 and 17:00 GMT.
Asian and European Market Overlap: 7:00 - 9:00 GMT
The next best time period to trade Forex is during the Tokyo and European Session overlap when both the Asian and European traders have the opportunity to respond to European economic data. The London open is also volatile as European traders normally react to overnight developments.
These times when markets overlap is the time you have to target to make profits, it is the best time to trade the Forex markets.
THE ABSOLUTE BEST TIME TO TRADE FOREX IS FROM 7:00 TO 17:00 GMT.
The volatility is much higher and trading opportunities are much more frequent with bigger moves, especially in these 10 hours. This is when you can make 70-100 pips Profit.
THE FOREX CURRENCY PAIRS THAT MOVE THE MOST DURING THESE HOURS ARE:
EURUSD
GBPUSD
USDCHF
USDJPY
Best Days to Trade Forex
Although the online currency trading market is open on all these 5 business days there are certain days which are considered as the best days to trade forex.
Statistics shows that Tuesday, Wednesday and Thursday are the best days to trade Forex since the maximum number of Forex trades happen during these weekdays.
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