The Best Times To Trade Forex

Although the Forex market is described as a 24 hour market when open Sunday (5pm EST) through to Friday (4pm EST), there are times in that when there is greater movement or volatility than other times, when the market tends to stagnate.

As a trader, particularly for Day and Intra-day and scalping, the periods of largest movement or range will offer the greatest potential for achieving profits and should be the time when a trader should be trading.  For a swing trader on the higher time frames this is less important.

The 3 main geographical areas which are open for trading at differing times are:

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• Australasia and Asia
• Europe
• America

It is when these areas overlap in their trading times that we tend to get the greatest movement in the Forex markets.

When translated into GMT we have the following overlaps:

• Asia/Europe:  7AM – 9AM GMT        (2AM-4AM EST)

• Europe/America: 1PM – 5PM GMT    (8AM-12PM EST)

 

So these are the times when we may wish to trade and focus our efforts.

Additionally, different currency pairs have different average daily ranges across the differing trading areas and time zones, so it is beneficial to know which pairs are statistically likely to have a greater range during the periods we are available to trade.

If you would like to know more about the Best Times To Trade Forex and which currency pairs to pick and really get into the detail and thus improve your knowledge and edge then download our free report and watch Sunil Mangwani's video on this subject by putting your name and email in the pop up window on the FxTribe Home page, if you don’t see it then just try it in a couple of days and it should appear.  Thanks.

Top Trading Tip: If you want to find a greater number of profitable trades, focus your trading on the hours in the day (and the relevant currency pairs) when the markets tend to make their biggest moves, i.e. when the major market overlaps occur, as these are the Best Times To Trade Forex.