The best Times of day to trade - or Not trade
Hello Everyone, I've been thinking to make a more complete list of the times of day to watch out for in trading.
The three main times of day I watch for are;
1 am to 3 am EST for the Asia / Europe sessions to overlap
8 am to Noon EST for the Europe / US session overlap
7 pm to 10 pm EST for the Australia / Asia sessions overlap
Then we've got the Tokyo lunch time. Tokyo Noon = 10 pm EST.
Market open times (EST) are;
Wellington, NZ 3:00 Pm
Sydney 5:00 Pm
Tokyo 6:00 Pm
Frankfurt 2:00 am
London 3:00 am
New York 8:00 am
What else do we have?? London fix.... Options expiries
Any additions or corrections
Best time to trade is Euro/London open
Worst time to trade is Asian session
This is just my opinion.
Right now i believe US session is the cruicial session to trade. UK seems pretty slow (not always) and starts reminding me of the old Asia session. As we get nice and juicy moves in Asia session right now.
Just 2 pips...
What qualifies as the 'best' time is that time which most frequently fulfills the conditions that your strategy is designed to capitalise upon. Squabbling over the 'best way' of trading, and the 'best time' to trade etc. betrays a closed mindedness and ignorance that it not only unhelpful and meaningless but also quite irritating. Some strategies are best in ranging markets, when support and resistance levels are more likely to hold and price is likely to trade between two defined levels, so perhaps the Asian session is best for them. If you're looking for times which yield the most information about the market, and possibly to take trades at these times that have a greater probability of running than at other times, the first hour or two of the Euro session has traditionally delivered the better opportunities. When it hasn't (when the markets may have been braced for news, or consoloidating after a busy Asian session), the US open has tended to inject volatility into the market. Check out this lookback on GBPUSD last week. The blue line is the Sunday open, black dashed London open, grey dashed NY open and green dashed is the Tokyo open. As an intraday trend trader, I am interested in the information that is given by the position of and direction that price has taken since the opening of the particular session that we are trading in, whilst also taking into account the weekly direction and the daily direction. It may be of interest to you how often the low or high is made within the first 30 mins of the session.
price action and news correlation.
What your discussing is actually a double edged sward, your looking at the market during the height of price action or volatility, the reason there is so much movement during these market hours is the direct correlation to NEWS events the FOREX reacts directly to news driven trades/events, remember NEWS gives the market direction, technicalís give entry and exit points and money management minimizes our losses and maximizes profits.
Let the price show its true way forming a significant pattern and trade it. That can happen anytime and that is the right time to trade, as birdt posted one post above.
Well, thanks for the responses guys. I don't know if it sounded like I was asking, "When should I trade, and What should I do"??
That was certainly not my intent.
I just wanted to compose a list of times of day to watch for. In doing the initial 'homework' I think I realized that there wasn't a whole lot more to add. Keep an eye on your financial calendar, keep your eye on the price action, and wait for the market to answer the question.
I watch the overlaps closely, and I don't mind avoiding 4am, 2pm, and 10pm.
If I'm going to trade Aud/Yen, I rather do it when Sydney and Tokyo are both open. Of course, price action is what dictates it. I'm just way more alert at midnight than I am in the afternoon.
So, it's definitely all about Price Action, maybe it's just the thread title that needs work!! Trade Well.
Haa, not to mention DANGEROUS!
My body clock has adjusted to awake from tokyo open to london closes.
Biggest swings is what i'm game for and Asia open +1hour is NICE these days, turning into 1 of my trading slots.
I think the next best is 10am GMT to 12pm GMT, then nerves into US's open slow it down, then 3pm GBP ( US Open +30mins ) to 5pm.
Avoiding low range, likely to chop is key for my system!!
The best time to trade depends on the currency. Most would say that the Asian session is the worst time to trade, but I beg to differ as I trade the Asian session. Lately the session I've been avoiding is the US session; as I personally see it, the US session offers somewhat "erratic" unpredictable fasle movements because of market news release, inexperienced traders, and the US Stock market - which holds a huge influence over US based pairs.
I prefer to trade on a level of "predictability" and that is what the Asian session has to offer. Of course pairs such as, Usd/Jpy, Aud/Usd, and Nzd/Usd opens during the Asian session, but volatility across the board (on all pairs) are low, limiting the effects of "false" signals. Sure what I'm telling you is based on my own opinion, but I would invite any trader to give the Asian session a try and see how much more profitable it could be for you.
what you mean to say is the AMERICAN factor and I do agree.
The first hour or 90mins TOPS is spot on for the Asian market for me.
© Forex Factory