Best Hours to Trade Forex
By: Lisa
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Would you like to know the best hours to trade Forex?
From Sunday evening to Friday evening, the Forex market is open 24 hours a day. Many new traders think that because of this, you can trade whenever you want. Technically this is true, but the fact is, some hours present better opportunities than others. This translates to greater potential profit!
You can't track every single movement on the market whether you have a full-time job or if you are a full-time trader. You have to sleep sometime!
It's crucial for you to know when you can expect high volume, so that you can implement your trading methods the most effective way. At those hours of higher volume, you can take full advantage of forex benefits. The best time to enter is when several countries are trading at the same time. In each time zone across the world, forex markets operate from 8 am to 4 pm. So, to take advantage of heavy trading volume, look at when forex market hours overlap. That's when the forex market is the most active and has the largest volume of trades and the biggest pip movements.
When do forex trading times overlap?
There are many countries trading around the world, but the most important Sessions in Forex are:
The U.S. Session is 8am to 5pm EST - Even with the minimal overlap in hours, this is a great period to implement your forex strategies. You can expect good volatility in any currency pair. This is because the US Dollar is the most traded currency in the world, so forex traders will always trade during the US Session.
The Autrailian Session is 5pm to 1am EST - The New Zealand Session actually kicks off a Forex trading "day". But the Austrailian Session is one of the four primary trading times for most Forex traders, making these hours a good time to trade. Of course, the Aussie is a good currency to look at during the hours that Sydney is open.
The Asian Session is 7pm to 4am EST - During this period, you can successfully day trade, especially if you trade the Yen. USD/JPY is generally a good choice in this time frame. This period is not as volatile as the US session or the European session, but it's possible to trade it and achieve good results.
The European Session is 2am to 12pm EST - This is one of the best periods to trade Forex. Since most of the dealing desks of large banks are located in London, most major Forex transactions are completed during this time. During these hours you can implement a successful trading method on any currency pair.
The European and U.S sessions are the most important ones in Forex, so you can trade between 2am and 5 pm EST and get good intraday swings almost every single day.
Between 8am and 12pm EST we have the U.S. session and the European session at the same time. This is the best time of the day to trade Forex. Volatility and volume is good in all currency pairs. Some of the most important economic releases appear during this period, and this brings good opportunities for Forex traders too! Check out our economic calander to see the upcoming releases that you'll want to know about.
Now you know the best hours to trade Forex, depending on your trading method. Keep learning and mastering Forex right here at PipsAngels.com. See you soon!
