- PPF Points
- 2,039
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.