BEST TIMES TO TRADE THE FOREIGN EXCHANGE MARKET
You may have observed that more than one market is open at the same time at various points of the day. Currency pairs, these overlapping times typically offer the highest level of liquidity as well as greater pip range swings. Theoretically, this tends to make these more liquid times better for trading.
Basically, as more liquidity and a bigger volume of deals will typically be more advantageous to the speculative forex trader, a trader can get an advantage at specific times when trading is heavier currency pairs. This is especially true for traders who use day trading or other short-term methods, like as scalping.
The overlap between Europe and North America: between 8:00 to 11:00
When both major forex trading centers in New York and London are open for business, this overlap is the most important time for forex trading. During this time, trading in all European currencies is at its busiest, and currency pairs involving the Euro, Pound Sterling, and Swiss Franc have the most liquidity.
The important 8:00 AM to 11:00 AM window, when the major trading centers of New York and London are both open for business, is one example of a very liquid overlapping time. Frankfurt is open from 8 AM to 10 AM as well.
Additionally, the best time to trade forex market for these currency pairs would probably be the most active around that time if you were trading the EUR/USD, GBP/USD, or USD/CHF currency pairs since these are the main currency pairs involving the United States and European nations.
The Australian Asian Overlap: from nine o'clock till twelve o'clock
During this time, the Asian markets of Tokyo, Singapore, and Hong Kong coincide with those of New Zealand and Australia. The Australian and New Zealand Dollars and their crosses often trade with the highest level of liquidity around this time.
Trading in Australia and New Zealand overlaps with Tokyo from 7:00 PM to 9:00 PM, followed by Singapore and Hong Kong until New Zealand closes at Midnight and Sydney closes at 1:00 AM.
Since Australia, New Zealand, Tokyo, Singapore, and Hong Kong are all open, the overlap period from 9:00 PM to Midnight is very fluid.
Trading in the currency pairs AUD/USD, AUD/JPY, EUR/AUD, NZD/USD, AUD/NZD, and NZD/JPY is frequently particularly busy during this overlapped time frame. There are various best forex trading platforms for beginners you can invest there.
Worst time to trade forex
Just before or right after High-Impact News
Volatility is what allows us to profit as traders . A market that is stagnant prevents you from making money. Each of us has experienced a situation where things start to go our way nearly immediately and continue to do so. And after two days and 300 pip travel, we have a lot of money.
Those weeks are good. However, they can also be quite risky, particularly for new traders.
The week's first and last day
Every new trading week begins with the first 24 hours being somewhat lax. After a 48-hour break, market players are just now resuming their online activity. The markets are also determining their course for the upcoming week currently.
Considering this, I typically don't participate on Mondays—unless, of course, I already have a solid position from the previous week.
Fridays are on the other end of the spectrum.
Lower liquidity is frequently noticeable during the final 24 hours of the trading week. Technical analysis performs better in markets with high levels of liquidity, as you may well know.
I also dislike taking on new risks right before the weekend. I don't want to be caught on the wrong side of a Monday gap, as the foreign exchange market can occasionally gap violently at the start of the week.
In my perspective, Friday is the worst offender of these two days. I don't like the concept of starting a new job in front of a 48-hour window where I have no control and can only watch.
But no matter how controlled and diligent you become, "those days" will always happen. You are probably familiar with the ones I'm talking about.
You could not feel well or haven't had a restful night's sleep. It's also possible that you're preoccupied with other things, which might cause your attention to wander for the day.
