What Time Does The Forex Market Close Today – In this lesson we will explain to traders when are the best times to trade the forex market. The most important session for forex trading, and the Asian session. We will also indicate when the most optimal trading opportunities occur.
As a forex trader, you know that the forex market is open 24 hours a day. In this article we will provide the most accurate time to be in front of the computer to maximize the potential for price movements and how to effectively control the forex market for exchange. Traders will be able to know the best time for the most possible pip potential. We will also explain some guidelines for trading outside of the main trading session, and when volatile news drivers can drive more moves. Forex trading hours are Sunday evening through Friday afternoon, USA time. There are two major forex trading sessions, the Asian session and the combined European and American session, which we will refer to as the main session.
What Time Does The Forex Market Close Today
The image above shows when various stock markets around the world open in relation to the main trading session. The Sydney and Tokyo stock markets represent and overlap the Asian session’s forex times. The London Stock Market and New York Stock Exchange schedules overlap the main trading session. We have heard some confusing terminology form traders such as London session forex time or New York session forex time. The main trading session overlaps both. The main trading session is about a 5-hour window of time starting about 4 hours before the US stock market opens until about 1 hour after. These are the best times to enter forex trading.
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In the US central time zone, the New York Stock Exchange opens at 8:30 AM, so the main session should be from 4:30 AM to about 9:30 AM for your best time to trade forex and trade entry points.
In the eastern United States, the New York market opens at 9:30 a.m., so the main session would be from 5:30 a.m. to 10:30 a.m. for your best time to trade forex and trade entry points.
These are the best forex trading times to enter trades, in the main session. If you live in another time zone around the world just take this same logic and apply it to your time zone. You need to know when the New York Stock Exchange opens in your time zone to estimate when the main session is in your particular time zone. In some cases, EUR, GBP and CHF news drivers come before the main session and these news articles on the economic news calendar are also good for driving potential trade entries.
See the illustration below. The peaks in the graph represent the volatility of the market and the participation of the Asian session against the main session. Most of the activity and market participation is during the main trading sessions on the right side. This is because all markets open in the main session: commodity markets, futures markets, options exchanges, and European and American stock markets all open at the same time.
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About 80 to 90% of the activity in the spot forex market occurs in the main trading session. About the same percentage of good entry points for sustainable trading occurs in the main session. A sustainable entry is defined as a movement that is 75 to 100 or more, and it gives you the freedom to close some lots and manage your money well while driving the remaining lots when the pair is trending. Or you can close the trade completely if you are in a non-trending or choppy market. For more information on entering trades we have a great illustrated article that discusses more criteria on how to trade forex.
Due to higher market participation and liquidity, the movements are stronger during this time. Trading volume and liquidity are higher compared to the Asian market hours. Sustainable trading entries can happen every day 5 days a week during the main session. If you are trading in the direction of the H4 timeframe or higher trends, you can generally hold most entries if you find a good entry signal in our heatmap tool. Which is discussed below.
All 8 currencies we track can move in the main trading session. USD, CAD, EUR, GBP, CHF, JPY, AUD and NZD can all have strong movements across 28 pairs. Trade entries can be verified using our excellent real-time trade entry management system, The Forex Heatmap®.
In the above example, the weakness of the GBP is driving the market in this trading session. If this is a new move on EUR/GBP or GBP/CHF after a period of consolidation, you probably have a valid entry. The move could also start after a GBP news driver on the news calendar. Entering fresh movements starting in the main forex session, after a cycle of consolidation, will ensure a high level of success. During and immediately around this critical 5-hour time window to enter trades, there are many new items on the global economic calendar that you can also monitor.
Foreign Exchange Market
Because of the high liquidity and market participation in the main trading session, traders should consider breakouts, any new movement cycles, trend reversals on higher time frames, or even day trading. The additional liquidity facilitates more flexibility for traders during this trading session.
Sometimes the pair EUR, GBP or CHF starts just before the main forex session. In general, it is good to trade these pairs, especially if there is something new or strong sentiment driving the movement. Always check the forex news calendar for specific news drivers and the exact times when news are scheduled for those currencies. Pips are possible on 28 currency pairs, including the EUR/USD, every day in this trading session.
Trading in the Asian trading session is not advised at all for new forex traders. For the most part, the volatility is too low for any good, sustainable trade. Remember, a sustainable entry is defined as a move that is 75 to 100 or more. A good sustained action in entering the Asian market fairs happens about once every 8-10 days, or about 3 times per calendar month. The rest of the time you would just be scalping or trading for a duration of about 1 hour or less. So the risk/reward ratio is usually too low.
An exception would be after major news drivers of AUD, NZD, or JPY on the forex news calendar. See the examples below highlighted in red. Some important news presenters are coming to this session at pre-specified times. News drivers such as unemployment and GDP can drive price movements. So these times can be good for potential trades in this session. This happens a few times a month.
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There is another situation where it may be possible to trade in this session. This would be the case where a new trend cycle starts on the time frames H4 or higher if a breakout of support or resistance on one of the higher time frames occurred in this session. Sellers can list these for free
New traders should completely avoid this session, then after about six months to a year of successful entry into the main session, trading in this session will bring you your extra. Then you will have enough experience watching the market to know when and how to trade in that trading session. Is it possible to pip in the Asian session?? Yes, absolutely it is. But good news and trendsetting parameters do not come only a few times a month. The rest of the time, the movements in this session are too small for trading with a good potential reward. In this session, traders would mainly focus on the pairs NZD, AUD and JPY due to their geographical location.
Has a great tool to validate trade entries in both trading sessions. It’s called the Forex Heatmap
®. In the main trading session, the heat map can be used to validate trade entries across 28 pairs and 8 currencies. The heat map can also be used in the Asian trading session to validate trades taken during that session. The heat chart has two separate sets of readings and is divided by trading session.
Opening Hours Forex Stock Vector. Illustration Of Communication
Here is an example of the heatmap signals plus our trend indicators. In the above news calendar example, you can use a strong heatmap signal to trade in the Asian session after the NZD GDP news driver is highlighted in yellow. The NZD news comes out, then the NZD starts to weaken. Then various exchanges are possible such as selling NZD/USD or NZD/JPY.
The heat map is arranged in the same way as the forex trading sessions. One heatmap is for trading all 8 currencies in the Asian trading session, and there is a separate heatmap for trading in the main trading session, very logical.
Conclusion – The best time to trade the forex market is in the main trading session. Some trades may also be made during the Asian session. Asian trading session happens much less often and much more strictly
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