When Is The Right Time To Trade Forex – In this lesson, we will explain to traders what is the best time to trade in the forex market. Main forex trading section and section of Asia. We will also point out when the best sales opportunities occur.
As a forex trader, you know that the forex markets are open 24 hours a day. In this article, we present some very specific times that you should be in front of the computer to maximize the possibility of price movements and how to effectively monitor the forex market. Traders will be able to know which are the best times for the highest possible pip. We will also provide other trading guides outside of the main trading section and if the news is not stable it may cause more traffic. Forex trading hours are Sunday evening through Friday afternoon US time. There are two main forex trading platforms, the Asian sector and the combined European and American sector, which we will refer to as the main sector.
When Is The Right Time To Trade Forex
The image above shows when various stock markets around the world opened based on the main trading session. The stock markets in Sydney and Tokyo represent and coincide with the times of the Asian forex sectors. The working hours of the London and New York Stock Exchange coincide with the main trading session. We heard some vague terms from traders like London session forex time or New York session forex time. The main selling point overlaps both. The main trading section is about a 5-hour time window that starts about 4 hours before the US market opens until about 1 hour after it opens. This is the best time to enter forex trades.
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In the US Central Time Zone, the New York Stock Exchange opens at 8:30am, so the main session would be from 4:30am to around 9:30am, which is your best time to trade forex and trade entry points.
In the US Eastern time zone, the New York Stock Exchange opens at 9:30, so the main session would be from 5:30 to 10:30, which is the best time to trade forex and trade entry points.
These are the best times to trade forex to get into trading in a big way. If you live in a different time zone around the world, use the same concept and apply it to your time zone. You need to know when the New York Stock Exchange opens in your time zone to estimate if the stock is in your time zone. In some cases, EUR, GBP and CHF news appear before the main stage and these news on the financial news calendar are also suitable to trigger potential trades.
Look at the picture below. The chart headings represent market volatility and participation in the Asian sector compared to the main sector. Most of the market activity and participation is right during the main trading session. This is because all markets are open for the most part: commodity markets, futures markets, exchange options, and the European and US equity markets are all open at the same time.
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About 80 to 90% of the activity in the forex market takes place during the main trading period. At least one of the best selling parts of the market is seen in the main sector. A strong entry is defined as a move of 75 to 100 pips or more and gives you the freedom to close a few lots and hold your money well on the remaining lots during the upswing when the pair is moving. However, you can close the trade completely if you are out-of-trend or the market is bad. For more information on how to enter a trade, we have a great article with pictures that discusses several ways to enter the forex business.
Due to increased market participation and liquidity, trends are very strong at this time. Trading volume and liquidity are very high compared to Asian market times. False trading entries can happen every day five days a week for the most part. If you are trading against the H4 time frame or higher trends, you can usually handle more entries if you receive a good entry signal from our heat map tool. That is discussed below.
All 8 currencies that we track can move into a large trading segment. USD, CAD, EUR, GBP, CHF, JPY, AUD and NZD can have strong movements in 28 days. Trade entries can be confirmed using our best real-time trade entry management system The Forex Heatmap®.
In the example above, the weakness of the GBP is driving the market this part of the trade. If this is a new level in EUR/GBP or GBP/CHF after a period of integration, you may be authorized to enter. Movement can also start after the GBP driver news on the news calendar. Entering new trends first in the main forex section, after combining the cycle, will lead to higher success. During and immediately around this important 5-hour trading window, there is a lot of news on the global economic calendar to keep an eye on.
Best Time To Trade Forex
Due to the high liquidity and market participation in the main trading stage, traders should consider breakouts, potential new moves, continuation of trends on higher time frames or even day trading. The additional liquidity allows more flexibility for traders during this trading phase.
Sometimes the EUR, GBP or CHF pairs start to move shortly before that. It’s usually good to trade these two, especially when there is news or strong sentiment driving them. Always check the forex news calendar for the exact news drivers and the exact time the news is scheduled for those currencies. Pips are possible for 28 currency pairs, including EUR/USD, every day in this trading session.
Trading in the Asian market is not recommended at all for new forex traders. Volatility is too low for any good, stable trade. Remember, a strong entry is defined as a move of 75 to 100 pips or more. A good strong sales entry when entering the Asian market occurs at least once every 8-10 days or at least three times per calendar month. The rest of the time was just scalping or sweating for an hour or less. So the risk-reward ratio is very low most of the time.
The default is either after the most important AUD, NZD or JPY news on the forex news calendar. See examples highlighted in red below. There are some important news drivers that come into this section at predetermined times. Price movements can be driven by news such as the unemployment rate and GDP. So these times can be good for trading in this sector. This happens a few times a month.
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There is one more situation where it may be possible to sell in this section. This would be the case if a new cycle starts on the H4 or higher time frames, if there is a support or resistance break on one of the higher time frames this section. Sellers can create them for free
New traders should avoid this sector completely, then after six months to a year of successfully entering the main sector, trading this sector will bring you more pipes. At that point, you will have enough knowledge of the market to know when and how to sell in that trading area. Is it possible to make pips in the Asian sector? Yes, that’s right. But the relevant news and trends do not appear but a few times a month. All the time, the moves in this section are too small to trade with the best possible profit. In this session, traders mainly focused on NZD, AUD and JPY pairs due to their position.
®. In the main trading section, the heat map can be used to confirm trade entries in 28 pairs and 8 currencies. The heatmap can also be used in the Asian sales department to confirm the transactions made during that period. The heat map has two separate sets of readings and is broken down by sales category.
Here is an example of heatmap signatures and our performance indicators. In the news calendar example above, you can use a strong heat map indicator to trade the Asian sector following the NZD GDP news driver set in the index. NZD news comes out, then NZD starts to weaken. Then different trades are possible, like trading NZD/USD or NZD/JPY.
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The heat map is arranged in the same way as forex trading units. Another heatmap is for trading all 8 currencies in the Asia trading section and there is a separate heatmap for trading in the main trading section which makes sense.
Findings – The best time to trade in the forex market is the main trading phase. Some sales can also be done during the Asian session. Trade in parts of Asia is less frequent, so strict entry rules must be used. The Forex market is a true 24-hour market, but
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