So
far, all the lessons we have taught you deal with “how” to trade
the forex market. But another important lesson that you need to learn is
“when” to trade the forex market.
Yes,
it is true that the forex is open 24 hours a day, but that doesn’t mean it’s
always active the whole day. You can make money in the forex when the
market moves up, and you can even make money when the market moves down.
However, you will have a very difficult time trying to make money when the
market doesn’t move at all. This lesson will help determine when the best
times of the day are to trade.
Market Hurs
Before
looking at the best times to trade, we must look at what a 24hr. day in the
forex world looks like. The forex can be broken up into three major
trading sessions: the Tokyo Session, the London Session, and the U.S.
Session. Below is a table of the open and close times for each session:
You
can see that in between each session there is a period of time where two sessions
are open at the same time. From 3-4 a.m. EST, both the Tokyo and London
markets are open, and from 8-12 p.m. EST, both the London and U.S. markets are
open. Naturally, these are the busiest times during the market because
there is more volume when two markets are open at the same time.
You
can see that in between each session there is a period of time where two sessions
are open at the same time. From 3-4 a.m. EST, both the Tokyo and London
markets are open, and from 8-12 p.m. EST, both the London and U.S. markets are
open. Naturally, these are the busiest times during the market because
there is more volume when two markets are open at the same time.
As you
can see, the London session usually shows the most movement.
Now
let's see which days of the week are best for trading...