Tuesday, 05 December at The foreign exchange market is usually alive for 24 hours per day, apart from weekends. As such, timing is of essence. If you want to maximize your returns, then choosing the best time to trade is as important as knowing how to trade. Experienced traders have discovered this secret and they carefully choose the time to place their trades. Let's examine the best times of trading forex. It's important to note that the hour foreign exchange market can be divided into three major sessions.
First, is the Asian trading session that opens at 6: Second, is the New York trading session that opens at 8: Third, is the New York trading session that opens at 8: The best times to trade are when two sessions are operating at the same time. During these times which trading sessions overlap, there is more volume and momentum to fuel the movement of currency pairs.
Since there are more participants in the market, it is easier to spot trading opportunities. Furthermore, times when trading sessions overlap also tend to be when economic data is released, and this ignites trends and breakouts in the market. Most traders trade during the overlap of the London and the New York session. Since they are the most active sessions, their overlap comes with even more advantages. At this time, the London session is closing while the New York session is opening; thus, it is basically a very volatile and liquid time to spot trading opportunities and maximize your returns.
Take note that New York and London are the biggest trading centers in the globe and you can find good price action when both of them are operating. During the times when sessions overlap, you should trade currency pairs with the largest pip movements. And, you should remember that when to trade is based on your trading style. If you are someone with an active personality, then you can enjoy trading during active and liquid market hours.
On the other hand, if you tend to be slow at making trading decisions, then you should consider trading during the "off-hours.More...