What Times To Trade Forex - All About Forex

What Times To Trade Forex

What Times To Trade Forex – In this lesson, we will explain to traders what are the best times to trade in the Forex market. Main Forex trading session and Asian session. We will also determine when the best trading opportunities will occur.

As a forex trader, you know that the forex market is open 24 hours a day. In this article, we will provide more accurate hours to sit in front of the computer to maximize the potential of price movements and effectively control the forex market for trades. Traders will be able to know when are the best times to get the most pips possible. We’ll also outline some trading guidelines outside of the main trading session and when volatile news can prompt further movement. Forex trading hours are from Sunday afternoon to Friday. afternoon US time. There are two main forex trading sessions, the Asian session and the combined European and American session, which we will refer to as the main session.

What Times To Trade Forex

What Times To Trade Forex

The image above shows when various exchanges around the world are connected to the main trading session. The Sydney and Tokyo Stock Exchanges represent and overlap the forex periods of the Asian session. The working hours of the London and New York Stock Exchanges overlap with the main trading session. We have heard some vague terminology from traders such as London forex session time or New York forex session time. The main trading session overlaps these two. The main trading session is an approximately 5-hour window that begins 4 hours before the US stock market opens and ends approximately 1 hour after. This is the best time to enter Forex trading.

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In the US Central Time Zone, the New York Stock Exchange opens at 8:30, so the main session would be 4:30 to 9:30, which is the best time for forex trading and entry points.

In the US Eastern time zone, the New York Stock Exchange opens at 9:30 AM, so the main session will be from 5:30 AM to 10:30 AM, which is the best time to trade forex and trade entry points.

These are the best forex trading times to enter trades during the main session. If you live in a different time zone around the world, use the same logic and apply it to your time zone. You need to know when the NYSE opens in your time zone so you can calculate when the main session is in your time zone. In some cases, EUR, GBP and CHF news appear before the main session and this news on the financial news calendar is also good for stimulating potential trade entries.

Look at the illustration below. The tops of the chart represent market volatility and participation in the Asian session compared to the main session. Most of the activity and market share is in the main trading sessions on the right. This is because all markets are open during the main session: commodity markets, futures markets, options exchanges, and European and US equity markets are open at the same time.

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About 80-90% of the activity in the forex spot market takes place during the main trading session. About the same percentage of good permanent trading entry points occur during the main session. A permanent entry is defined as a move of 75 to 100 pips or more, giving you the freedom to close a few lots and manage your money as you go. If the rest catches the pair trend. However, you can close the trade entirely if you are in a non-trending or turbulent market. For more information on how to enter a trade, we have an excellent illustrated article that discusses several criteria for entering a Forex trade.

Due to greater market participation and liquidity, movements are much stronger during this time. Trading volume and liquidity are much higher compared to Asian markets. Permanent trade entries can be made every day 5 days a week during the main session. If you are trading in the direction of the H4 timeframe or major trends, you can generally hold most entries if you get a good entry signal from our heat map tool. Which is discussed below.

All 8 currencies we track can be moved during the main trading session. USD, CAD, EUR, GBP, CHF, JPY, AUD and NZD can see strong movements in 28 pairs. Trade entries can be verified using our excellent real-time trade entry management system The Forex Heatmap®.

What Times To Trade Forex

In the example above, GBP weakness is driving the market this trading session. If this is a new move in EUR/GBP or GBP/CHF after the settlement period, the entry may be valid. The move could also start following the GBP news guide on the news calendar. Entering new moves starting in the main forex session, after the consolidation cycle, will ensure a high level of success. During and immediately after this critical 5-hour time window for trade entries, there is plenty of news to follow on the global economic calendar as well.

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Due to the high liquidity and market participation during the main trading session, traders should pay attention to breakouts, possible new cycles of movement, trend following on higher time frames or day trading. The additional liquidity allows more flexibility for traders during this trading session.

Sometimes EUR, GBP or CHF pairs start to move before the main Forex session. It is generally a good idea to trade these pairs, especially if the move is driven by strong news or sentiment. Always check the Forex news calendar for specific news drivers and the exact time when news is scheduled for those currencies. Pips are possible for 28 currency pairs, including EUR/USD, each day during this trading session.

Trading in the Asian trading session is not recommended at all for new forex traders. Most of the time the volatility is too low for good and sustainable trades. Remember that a sustained entry is defined as a move of 75 to 100 pips or more. A good stable entry into the Asian market occurs approximately every 8-10 days or 3 times per calendar month. The rest of the time you will be scalping or 1 hour or less. Therefore, the risk/reward ratio is often too low.

The exception would be after major AUD, NZD or JPY news factors on the Forex news calendar. See examples highlighted in red below. Some important news anchors come on this show at a pre-arranged time. News such as the unemployment rate and GDP can affect 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 trading in this session may be possible. This would be when a new trend cycle starts on the H4 or higher time frames or on one of the higher time frames where support or resistance has been broken in that session. Merchants can set it up for free

New traders should avoid this session entirely, then after six months to a year of successful entries into the main session, trading this session will bring you extra taps. By then, you will have enough experience watching the market to know when and how to trade during that trading session. Is it possible to tap in Asian session?? Yes, it absolutely is. But the correct settings of news and trends do not happen more than once a month. The rest of the time, the moves in this session are too small to trade with a good potential reward. In this session, traders would mostly focus on NZD, AUD and JPY pairs due to their geographical location.

It has a great tool for validating trade entries during trading sessions. It’s called The Forex Heatmap

What Times To Trade Forex

®. During the main trading session, the heat map can be used to confirm trade entries in 28 pairs and 8 currencies. The heatmap can also be used during an Asian trading session to confirm trades made during that session. The heat map has two separate sets of readings and is divided by trading session.

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Here is an example of heatmap signals and our trend indicators. In the news calendar example above, you can use a strong heatmap signal to trade the Asian session after highlighting the NZD GDP news driver in yellow. NZD news comes in, then NZD starts to weaken. Various trades are then possible, such as selling NZD/USD or NZD/JPY.

The heat map is organized in the same way as Forex trading sessions. One heatmap is for trading all 8 currencies in the Asian trading session and a separate heatmap is for trading in the main trading session which is very logical.

Conclusions – The best time to trade the Forex market is during the main trading session. Some trading can also be done in the Asian session. Asian shows are much less frequent and much more demanding

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