Best Times of Day to Trade Forex
A short test for you: when do TV ratings show the highest figures? If you answered prime time, you are perfectly right!
How is it connected with trading sessions? Rating, which is compared to marketability, is the biggest when more people take part in the market activity.
Therefore, you might make a guess that it takes place within the crossing of the sessions.
In case you have the same thoughts, you are just partly correct. In reality, it’s a bit more complicated.
Let’s talk about the features of the crossing sessions to get the right answer.
The marketability within the session is very low, and there are some reasons for this. Normally, the movement at the Asian session isn’t that significant. If there’s an increase, then there will be a huge drop afterward, which is a typical change.
If the liquidity withers, the newcomers from Europe, wishing to get profit by trading, can easily get bored.
It’s a perfect time to calm down, relax, and search trades to look upon within New York and London sessions.
Overlapping: New York-London
Here’s when the big deal’s coming! Traders are getting ready to get a nibble during this time.
It’s the most interesting and active time of the day, as long as the traders from two major monetary centers start the deals and their activity in general.
Within the period mentioned, we are to experience some big changes. The most significant moments are linked to the news issues from Canada and the USA.
The markets can be affected by the news from Europe too.
The trend will go on if some trends were set up in the European session. This happens because traders from the US interfere and strengthen their positions after finding out about the news.
However, it’s better to be careful at the final stage of the session as long as traders from Europe can close, which will provoke choppy moves before about midday in the USA.