Rhody Trader
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The best times to trade are the ones that suit your schedule best - meaning the ones you can trade consistently. There are no pairs which offer "the best trading opportunities". All of them offer plenty of opportunities, depending on your trading style and approach.
Thanks for your reply.
I just wondered if there were times when the market was more volatile and whether some pairs traded better than others.
Regards
TheBramble
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BF - although the FX markets are traded globally, there are the major centres where you’ll see a circadian volume profile. London still trades the most currency (even more USD traded in London than New York), followed by New York then Tokyo.
Not surprisingly, the centres tend to trade most strongly (normally) when the majority of that particular centre’s traders are physically awake and at their desks (there are other combinations of those two elements) – i.e. their normal trading day.
The Asian market hours will tend to see higher Asian currency trade, so AUD, NZD and JPY will do better then than at other times (normally). But there are other cultural differences that rather dictate the level of trading in Asia quite separate to any macro-economic bias and the volumes are dropping in relation to trading volumes at the other centres, although still rising in absolute terms.
Although these global and cultural distinctions do exist, they are becoming less distinct for a number of factors which don’t go any way to answering your question here right now, so I wont expand on them.
So, for want of a better yardstick, (all times GMT): 07:00-15:00 will be London based, 14:00-19:00 NY based and 01:00-08:00 Tokyo based (though don’t hold your breath – lol!).
There used to be a distinction for specific days and that has already blurred into relatively narrow-to-nothing differences – except for Friday which joins the increasing Western consensus in a move to a 4-day week.
Within the context of the above, I agree with Rhody Trader in that find out what times of day/days of week suit YOU best and then do your research – find out what moves most or provides you with the best trading opportunities.
Not surprisingly, the centres tend to trade most strongly (normally) when the majority of that particular centre’s traders are physically awake and at their desks (there are other combinations of those two elements) – i.e. their normal trading day.
The Asian market hours will tend to see higher Asian currency trade, so AUD, NZD and JPY will do better then than at other times (normally). But there are other cultural differences that rather dictate the level of trading in Asia quite separate to any macro-economic bias and the volumes are dropping in relation to trading volumes at the other centres, although still rising in absolute terms.
Although these global and cultural distinctions do exist, they are becoming less distinct for a number of factors which don’t go any way to answering your question here right now, so I wont expand on them.
So, for want of a better yardstick, (all times GMT): 07:00-15:00 will be London based, 14:00-19:00 NY based and 01:00-08:00 Tokyo based (though don’t hold your breath – lol!).
There used to be a distinction for specific days and that has already blurred into relatively narrow-to-nothing differences – except for Friday which joins the increasing Western consensus in a move to a 4-day week.
Within the context of the above, I agree with Rhody Trader in that find out what times of day/days of week suit YOU best and then do your research – find out what moves most or provides you with the best trading opportunities.
, so this isanother reason why I trade forex UK session as it is best for scalping.georgeharrison
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What is the most profitable time frame in Forex?
Hi all,
Someone asked what time frame is the most profitable. The advantage of longer time frames are that you can catch the bigger moves that there is actually a fundamental reason for. The flip side is that you won't be able to use high leverage without getting wiped out with a margin calls if you are unlucky in your timing. As for the short term, you can use higher leverage and compound your money faster, but market moves are largely random. Please consider the role of randomness in your trading and your account equity graph. The more experienced traders on this forum would agree with me (I hope!)that regardless of the time frame you are trading on, trading more often does not necessarily equate to larger profits. Plus it's possible to make nice returns annually without being glued to the computer screen during certain times or all of the day. I hope this perspective is useful.
Have a fantastic weekend everyone!
Kris Matthews
Someone asked what time frame is the most profitable. The advantage of longer time frames are that you can catch the bigger moves that there is actually a fundamental reason for. The flip side is that you won't be able to use high leverage without getting wiped out with a margin calls if you are unlucky in your timing. As for the short term, you can use higher leverage and compound your money faster, but market moves are largely random. Please consider the role of randomness in your trading and your account equity graph. The more experienced traders on this forum would agree with me (I hope!)that regardless of the time frame you are trading on, trading more often does not necessarily equate to larger profits. Plus it's possible to make nice returns annually without being glued to the computer screen during certain times or all of the day. I hope this perspective is useful.
Have a fantastic weekend everyone!
Kris Matthews
I agree. Although the biggest advantage of bigger time frames are in my opinion more 'clear' charts. Just compare 10min chart of any pair to daily chart. The shorter time frame there less 'trend following' approach can be taken. A lot of noise is on shorter time frames.
The time frames depends on your trading technique, and you after all.
Each pair offer diferent chances, several times a day if you are there to get it, just try to use the most common traded pairs.
Another observation, try to learn specific pairs, one or two or three - for very experienced guys -, avoid looking through to find out at which moment which pair offer good chances, that will be a dissaster into a very shorth time frame, i can tell you.
Each pair offer diferent chances, several times a day if you are there to get it, just try to use the most common traded pairs.
Another observation, try to learn specific pairs, one or two or three - for very experienced guys -, avoid looking through to find out at which moment which pair offer good chances, that will be a dissaster into a very shorth time frame, i can tell you.
lancehibner
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Hi,
You can easily find out an appropriate time to enter into the forex market when the activity or the volumes of transactions are at the higher rank.
comparable any other active markets, there are good times and bad times to trade in forex also. Choosing to trade when the market is at its best can gain productivity and generate significant financial profits. It will be wise to assume that trading intermittently throughout the day will produce the best results.
You can easily find out an appropriate time to enter into the forex market when the activity or the volumes of transactions are at the higher rank.
comparable any other active markets, there are good times and bad times to trade in forex also. Choosing to trade when the market is at its best can gain productivity and generate significant financial profits. It will be wise to assume that trading intermittently throughout the day will produce the best results.
GammaJammer
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nice spam
