When is the Best time to trade?

in #forex7 years ago

You will read a lot about the forex market being open 24 hours and it’s a big allure however that doesn’t mean you should trade 24 hours a day. Traders should only trade a currency pair when there is a lot of volume and transactions happening i.e. - when the major exchanges are opened - and avoid trading when the exchanges are closed.

Trading the Asia/Pacific session.

Trading centres Wellington, New Zealand; Sydney, Australia; Tokyo, Japan; Hong Kong, and Singapore account for around 22% of daily global trade. The overall direction of the NZD, AUD and JPY can be set during this session depending on news and data reports. Chinese news and data is now becoming more critical.

Trading the European/London session

European centres and London account for more than 55% of daily trade, London alone is estimated to account for more than 1/3 of global daily trade. The European session overlaps with Asia and North America so it’s an excellent time to trade especially with all the market interest and liquidity present.

To be extra sure of a good trading time most currency traders hone in on a three or four-hour window from 1pm to 4pm London time when it and New York are both open.

Trading the North American session

North American trading sessions account for around 20% of global trading volume. Due to the overlap of the European and North American trading sessions the trading volumes are more significant and meaningful. It’s the North American morning when many key U.S economic data are released and when the forex market makes many of its key decisions.

As the European and London sessions wind down their trading day it can generate a lot of volatility and activity.

https://binaryforextrader.com

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