best time to trade forex

There is one other situation where it might be possible to trade in this session. This would be the case where a new trend cycle is starting on the H4 time frames or higher or a breakout of support or resistance on one of the higher time frames occured in this session. Traders can set up these free forex trend indicators to track when new trends start on all 28 pairs we follow. About 80 to 90% of the activity in the spot forex market occurs in the main trading session. Roughly the same percentage of good sustainable trade entry points occur in the main session. Did you know that it’s possible to trade with virtual currency, using real-time market data and insights from professional trading experts, without putting any of your capital at risk? With an Admiral Markets’ risk-free demo trading account, professional traders can test their strategies and perfect them without risking their money.

This is because the volume of financial transactions is determined by the number of markets that are open and the times during which they overlap with each other. Swing and position traders are less affected by the time of day they place their trades, since their overall profit-target and trading horizon is much larger compared to that of scalpers and day traders. CHF is the official currency of Switzerland and it has the highest ranks for being more traded in the forex market. It will also give high profits to the traders for a better trade. USD to CAD is the third most traded currency pair of the forex market.


These two centres account for over half of all forex trades. Choose from spread-only, fixed commissions plus ultra-low spread, or STP Pro for high volume traders. Also, a country that has higher interest rates through their government bonds tend to attract investment capital as foreign investors chase high yield opportunities. However, stable economic growth and attractive yields or interest rates are inexorably intertwined. In general, the more economic growth a country produces, the more positive the economy is seen by international investors. Investment capital tends to flow to the countries that are believed to have good growth prospects and subsequently, good investment opportunities, which leads the country’s exchange strengthening.

  • Try your hand at currency trading by opening a demo account on Justforex.
  • We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders.
  • The best time to trade Forex, and be successful, is the period of the day when trading volumes and volatility levels are large enough to fill retail orders and the markets are trending.
  • Remember, I’m the guy who has tested everything everywhere.

As an additional tool, there are indicators that mark the open and close of the various markets on your charts for you. It used to be the 4 hr and 1 hr would out perform the Weekly chart in my testing, but this has changed in the last few years. I would say the 4 hr is the next best after the Weekly, but it’s a pain in the ass to trade, and I don’t recommend it. They just all perform better on the Daily time frame, that’s all. If you’re profitable in both, for the love of God, do both!! I just want you to succeed and make lots of money in the end.

Forex Trading Session Overlaps

She has 20+ years of experience covering personal finance, wealth management, and business news. If you use VPN services, make sure services are legitimate in the country you are connecting from. Read through our best broker listings compared based on our 10+ ranking criteria. Keep updated with our round the clock and in-depth cryptocurrency news. The USDCHFis also most active between 0700 and 1700 GMT. The most action is typically seen between 1200 and 1700 GMT. This blog and my YouTube channel and my Podcast are not designed to be shown to as many viewers as possible.

best time to trade forex

This affords traders the benefit of not having to watch markets continuously while they’re trading. Once an opportunity is identified, traders place the trade with a stop attached and monitor at a later stage to see the progress of the trade. Swing trading is a happy medium between a long-term trading time frame and a short-term, scalping approach. One of the best benefits of swing trading is that traders can get the benefits of both styles best time to trade forex without necessarily taking on all the downsides. As a result, this makes swing trading a very popular approach to the markets. After a trader has gained comfort on the longer-term chart, they can then look to move slightly shorter in their approach and desired holding times. This can introduce more variability into the trader’s approach, so risk and money management should be addressed before moving down to shorter time frames.

Article Sources

2 – Seriously, you can trade minutes a day and outperform almost everyone. The content of this website must not be construed as personal advice.

Video: The Best Time To Trade The Forex Market

Many large market participants are active during the Asian session to position their orders accordingly the market dynamics. In fact, this session is characterised by market consolidation, and currency prices move along a narrow range. For a best time to trade forex starter like me, i’m tempted to overtrade by looking at 10 pairs for a “good” set up which gives me confusion and analysis paralysis. Look forward to part two as one of my big issues is the times to trade – just cant get a handle on that.

This is the time when the liquidity is highest for major currency pairs like EUR/USD, GBP/USD etc. Trends are common during these hours & also there are lots of chances to close positions profitably in short time. The global forex market can be divided into four major trading sessions. Each trading session is centered at different locations with different time zones. The four major trading hubs are namely London, New York, Tokyo, and Sydney. Traders utilize varying time frames to speculate in the forex market.

Leave a Comment

Your email address will not be published. Required fields are marked *