A Brief Study On The Best Forex Trading Days
The Foreign exchange market is open twenty-four hours a day, which means that you have the ability to trade whenever you would like. However, not all hours and days are optimal for trading your Forex shares. There are certain times when the trading volume is down, and price movements are slow. Knowing when to trade will place you at an advantage over traders that use the market whenever they feel like it.
Before using this information, be sure to refer to the specific time zones for the currencies you are trading. All of these, of course, will vary by the country location.
Most people do not realize that there is a three hour window in which the United States and London sessions of trading actually overlap. These hours specifically are from 8am to 11am Eastern time. These three hours are the peak trading time, and the best time in which for you to be actively trading. This is assuming that it is United States currency that you are trading. Savvy traders focus the majority of their activity around these hours.
There is another session that overlaps and should actually be avoided. This is the European and Asia overlap. With lots of traders asleep during this time, movement is slow and not very predictable. This time for those in the United States is 2am to 4am Eastern time. It is best to just avoid these two hours altogether.
Statistics show that the largest number of trades occur on Tuesday and Wednesday, thus making these the best days for trading. These extremely active days have a large volume of movement, making it easier to make market gains. Using these days coupled with the overlap hours is the absolute best strategy.
Avoid trading on Friday at all costs. Statistics show that this day is unpredictable. Since trading is based on predicting outcomes, it is not wise to participate on a day that has historically left traders without the ability to do such.
Additionally, holidays and Sundays should be avoided. This is simply because the market is rather stagnant and trading is slow on these days. With currency rates moving slowly on these days, it is best to avoid them.
There are tools out there that can help you analyze trading statistics for not only specific days, but even specific hours to see how the market performed, and how active it was. This can help you further develop your trading strategies based on these numbers.
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