Best Times of Day to Trade Forex

Now you know there are four trading sessions in the Forex market. But still you don’t know which period of time is best for trading. The answer is simple. The best time is when more traders are involved to the market. From the previous lesson you already know about overlap sessions and what is happening during session overlapping. And also you already know there are two overlap session in the Forex market.  Let’s discuss some important things about this the two overlap sessions.

Tokyo – London Overlap

You need to know that the movement of market during this session is not much high. Because when the European traders start the day it is afternoon for the Asian traders so trading is boring to both of them. 

London – New York Overlap

This overlap is the busiest time of the day because the traders from world’s two largest financial centers are trading during this session. You can see very large movements when news comes from U.S or Europe during this period. There are some other things you need to know. If any trend formed during European session usually it continues because U.S traders establish their shares after watching what happened earlier in European session. And also you can see that at the end of the European session some traders close their shares. This can be lead to some choppy movements in the market. 

Best Days of the Week to Trade Forex

Now you know what the best time to trade is. And also you need to know what the best days to trade are. Look at the table below which shows the average pip range in each day of week.

From the table you can see that it would be best to trade during the middle of the week. Usually Friday afternoon is not good for trade because market seems dead after 12:00 pm EST. Now all of you know what the best time of the day to trade is and what the best days of the week to trade are. One more thing you need to know. Even you know the best time to trade still you don’t know what the worst time for trading are. 

1. During major news events.

Don’t trade before and after one hour to release major news events. Because the market is highly volatile during this period. Only experienced traders can trade during this period. 

2. Friday

Don’t trade Friday afternoon.

3. Holidays

Traders are not trading in holidays.

4. Week ends

Forex market is closed in weekends so you cannot trade.