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What time of the day is best for forex trading?

The best time to trade in the forex market highly depends on your goals—volatility, liquidity, or cleaner setups. Most traders, however, find that the most favorable time is when the London and New York sessions overlap, usually from 8:00 AM to 12:00 PM EST. It is during this time when the two major financial centers in the world are both active, therefore the volume of trading is the highest, the spreads are tighter, and price movements are most significantly pronounced. This is when the market really gets fuel and you can easily see big trends with momentum. If you are someone who loves rapid action and looking for big opportunities, this is the period to be present in the market. Conversely, if you are more of a patient, methodical type of trader, the early Asian session or the Tokyo open might be ideal for you, especially for pairs like USD/JPY, AUD/JPY, or NZD/JPY. The London session is also very much alive, particularly for the Euro zone fusion pairs like EUR/USD or GBP/USD, and the instant that the important economic news hits the marketplace, the session tends to show some rapid movements. Moreover, the New York session maintains the pace, and at the same time, it introduces U.S. economic figures that can further pump up the price. The thing you don't want to do is trade during the "dead zone," which is usually right after the New York session and before the Tokyo session starts, when the liquidity evaporates and the market usually moves sideways. When your trades are around these peak volume times, not only do you improve your success possibilities but you also can easily stay away from the real threat of frustration, and get better support if not false signals that accompany feeble, low-energy markets.
 
The real magic, in my experience, occurs when trading takes place during the overlap between the London and New York sessions. That window of 8 AM to 12 PM EST? Tight spreads, robust momentum, and strong trends give the impression that the market is fully awake. That's where I've made some of my best trades. However, the market simply drifts during the dead zone between the New York close and Tokyo open, and I also learned the hard way not to force trades during that time. I'll look to the Asian session for pairs like USD/JPY when I need a slower pace. In Forex, timing is crucial, and after I matched my trading style with the appropriate sessions, my win rate increased and my stress level decreased.
 
I have observed that the prime time of the day for forex trading is mostly a matter of major market hours and their overlapping periods. The forex market is available round the clock, five days in a week but the volatility and liquidity reach their highest during the overlapping period of the main market sessions.

The London and New York sessions are the liveliest, with the overlap between 8:00 AM and 12:00 PM (EST) being exceptionally profitable. It is the time when the highest number of trades is made, thus giving more chances for profits due to price swings. Moreover, the Tokyo session (12:00 AM - 9:00 AM EST) is less volatile while being a perfect option for the ones who prefer a less noisy market. In the end, timing is influenced by one's own strategy and trading style.
 

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