When is the Best Time of Day to Trade Forex?

[tar]

Euro , Cable and USDCHF VS JPY , AUD , NZD :

 

[shaheen83]

The forex market is available for trading 24 hours a day, five and one-half days per week. However, just because you can trade the market any time of the day or night doesn't necessarily mean that you should. Most successful day traders understand that more trades are successful if conducted when market activity is high and that it is best to avoid times when trading is light.

Here are some tips for using the Forex Market Time:

Concentrate your trading activity during the trading hours for the three largest Market Centers: London, New_York, and Tokyo. Most market activity will occur when one of these three markets open. Some of the most active market times will occur when two or more Market Centers are open at the same time.

 

[wackypete2]

Concentrate your trading activity during the trading hours for the three largest Market Centers: London, New_York, and Tokyo. Most market activity will occur when one of these three markets open.

That encompasses 22 of the 24 hours per day. So your advice is don't trade those other 2 hours because most of the activity occurs during the 22 hours the market centers are open?



Peter

 

[sonofcablemonster]

 

[Shakone]

So would you agree with FXCM's assertion that trading EUR USD in Asia is a better idea than trading it in any rightful session?

If we put currencies in session then Asia would throw up JPY, AUD, NZD with the proviso that USD is always going to be in the mix, given it's worldly status, but down the list.

Personally, I think it's total nonsense for FXCM to suggest trading EUR in Asia session, unless it was crossed with one, some, or all, of the Asia session currencies, with EUR USD coming way down the list in that scenario.

I wouldn't agree with FXCM, no. I don't think you can draw any sensible conclusions from that data at all, as I said. They drew the conclusion it's better to trade EURUSD in the Asian session, but that's not sensible as far as I'm concerned. So I can only guess that they want people to trade a bit more during the asian session (when EURUSD doesn't move much and spread costs are typically higher). What do you expect from a broker?

 

[random12345]

I wouldn't agree with FXCM, no. I don't think you can draw any sensible conclusions from that data at all, as I said. They drew the conclusion it's better to trade EURUSD in the Asian session, but that's not sensible as far as I'm concerned. So I can only guess that they want people to trade a bit more during the asian session (when EURUSD doesn't move much and spread costs are typically higher). What do you expect from a broker?

Aye I'd say it's just representative of the success of night owl people buying and selling at the top of a 5 pip range over the course of 5 Tokyo hours vs the absolute hammering they get during a London/NY spaghetti session trying to trade tight stops.

Isolated data be craptastic.

 

[counter_violent]

Aye I'd say it's just representative of the success of night owl people buying and selling at the top of a 5 pip range over the course of 5 Tokyo hours vs the absolute hammering they get during a London/NY spaghetti session trying to trade tight stops.

Isolated data be craptastic.

Chart shows session ranges, not that it needs explanation, but still !
Someone might get some benefit out of it. Anyone holding out of Asia will likely get d1cked all ways till Christmas on the volatility expansion in the next session .

Well I would post the chart but getting the following error message on T2W
Any ideas ?

File system directory is not writable.

 

[Forexmospherian]

Aye I'd say it's just representative of the success of night owl people buying and selling at the top of a 5 pip range over the course of 5 Tokyo hours vs the absolute hammering they get during a London/NY spaghetti session trying to trade tight stops.

Isolated data be craptastic.

Yet again its shows ignorance saying you cannot trade the "London / NY spaghetti session with tight stops"

Your info and data must be "craptastic " - although if its from the commercial world it probably is

When you are "good" and can read price and PA at the "coalface" - you can trade FX at any time ( and with tight stops under 5 pips) - although far better to be trading at peak times with high volumes such as LO and and hour or two after NY open.

London must have over 45% of the volumes now and US only 25 -30% - so it is not necessary peak volumes at 2.30 -3.30 pm UK time every day when Europe and US overlap

Just to back up my view on why the industry put out info with a "slant" or "bias"- and many commercials and ex commercial guys talk out their backsides - and think 8% growth on small monies over 10 trading days is so hard ( not) I have attached a screenshot of Major Magnum's trades for yesterday - with no help or assistance from me ( yes I have been helping him last 3 months - but away and not trading this part of the week)

See screenshot - enlarge and study - quite good of a scalping newbie - 25 trades ( including part trades)- - 6 wrong - all under what 7 pips and approx 110+ pips on the board - and over 10% increase in a day - even with a "craptastic" deal off his broker ;-)

He did print them on another thread - so no secret

He just need to tighten up his stops more get another 500 scalps under his belt and then he is well on the road to having a great "edge" - and of course then making real money. If he carries on for another 3 yrs and can slowly handle 10 full lots plus per pip - $100 - 300k per annum income is on the cards from a $50 -70K+ account - but as you fully know - if he - or even me had a $50 mill capital account - NO WAY could we manufacture the same results - ie different ballgame

Regards

F

attached

 

[Traderallen]

When is the best time to trade forex? This is a very amateurish question. And a lot of the comments on here are so micro in nature that they really don't matter. Who cares what FXCM says 95% or better of their traders are losers. They make money running traders through the mill so if you look at it from their perspective they only need to post ideas on the page to keep traders trading so they can keep making money.
Now back to the question, the answer is simple. Your trades need to be in the market when the market is moving, period end of story!! Forex is a highly volatile market therefore there are only two ways to trade it long-term and scalping. Long-term it doesn't matter what hours you want to place your trades so theoretically there is no best time. You look at the chart determine where you want to buy at, presumably at support. Place your orders as by limit sell limits whatever. And let them set on the server until they are filled. You may place in this morning and they may not get filled to the next day. It doesn't matter you're looking to get filled at a level not at a time frame.
Scalping on the other hand is totally different. You need to be at your trading terminal when the market is likely to move not when it's convenient for you. You have to look ahead and see what events are likely to be moving the market and be ready. That may be the European open, European news, US open, US news, coming out of a doldrums, and of course Asian news. Now obviously we can't be awake 24 hours a day at least not for very long. So you have to plan ahead. Do we care what market is more volatile than the other? It totally doesn't matter to the retail trade from home office trader. We take what the markets willing to give. And were there with an open hand when it's giving.
I know, I know what about the swing traders that are in the middle? There the 95% losers so we don't concern ourselves with them.

 

[random12345]

Yet again its shows ignorance saying you cannot trade the "London / NY spaghetti session with tight stops"

Your info and data must be "craptastic " - although if its from the commercial world it probably is

When you are "good" and can read price and PA at the "coalface" - you can trade FX at any time ( and with tight stops under 5 pips) - although far better to be trading at peak times with high volumes such as LO and and hour or two after NY open.

London must have over 45% of the volumes now and US only 25 -30% - so it is not necessary peak volumes at 2.30 -3.30 pm UK time every day when Europe and US overlap

Just to back up my view on why the industry put out info with a "slant" or "bias"- and many commercials and ex commercial guys talk out their backsides - and think 8% growth on small monies over 10 trading days is so hard ( not) I have attached a screenshot of Major Magnum's trades for yesterday - with no help or assistance from me ( yes I have been helping him last 3 months - but away and not trading this part of the week)

See screenshot - enlarge and study - quite good of a scalping newbie - 25 trades ( including part trades)- - 6 wrong - all under what 7 pips and approx 110+ pips on the board - and over 10% increase in a day - even with a "craptastic" deal off his broker ;-)

He did print them on another thread - so no secret

He just need to tighten up his stops more get another 500 scalps under his belt and then he is well on the road to having a great "edge" - and of course then making real money. If he carries on for another 3 yrs and can slowly handle 10 full lots plus per pip - $100 - 300k per annum income is on the cards from a $50 -70K+ account - but as you fully know - if he - or even me had a $50 mill capital account - NO WAY could we manufacture the same results - ie different ballgame

Regards

F

attached

What is this guy on about? I was referencing FXCM's data, not my own or anything commercial, nothing else. Silly old bugger. I'll miss this guy like I miss Op Telic.......

 

[counter_violent]

Chart shows session ranges, not that it needs explanation, but still !
Someone might get some benefit out of it. Anyone holding out of Asia will likely get d1cked all ways till Christmas on the volatility expansion in the next session .

Well I would post the chart but getting the following error message on T2W
Any ideas ?

File system directory is not writable.

Ok bug fixed chart uploaded

 

[tar]

When is the best time to trade forex? This is a very amateurish question. And a lot of the comments on here are so micro in nature that they really don't matter. Who cares what FXCM says 95% or better of their traders are losers. They make money running traders through the mill so if you look at it from their perspective they only need to post ideas on the page to keep traders trading so they can keep making money.
Now back to the question, the answer is simple. Your trades need to be in the market when the market is moving, period end of story!! Forex is a highly volatile market therefore there are only two ways to trade it long-term and scalping. Long-term it doesn't matter what hours you want to place your trades so theoretically there is no best time. You look at the chart determine where you want to buy at, presumably at support. Place your orders as by limit sell limits whatever. And let them set on the server until they are filled. You may place in this morning and they may not get filled to the next day. It doesn't matter you're looking to get filled at a level not at a time frame.
Scalping on the other hand is totally different. You need to be at your trading terminal when the market is likely to move not when it's convenient for you. You have to look ahead and see what events are likely to be moving the market and be ready. That may be the European open, European news, US open, US news, coming out of a doldrums, and of course Asian news. Now obviously we can't be awake 24 hours a day at least not for very long. So you have to plan ahead. Do we care what market is more volatile than the other? It totally doesn't matter to the retail trade from home office trader. We take what the markets willing to give. And were there with an open hand when it's giving.
I know, I know what about the swing traders that are in the middle? There the 95% losers so we don't concern ourselves with them.

I just see opinions here any studies ? same goes for other participants in this thread , everyone has an opinion but we want facts or studies , much appreciated ....

 

[wackypete2]

What is this guy on about?

Himself.


Peter

 

[counter_violent]

So, it doesn't take a genius to figure out why you don't trade EURUSD in Asia. Yes you might nick a few pips here and there a few times over out of that impressive 20 pip Asia range. Then lose all those gains and more in a single bum trade in a different, more volatile session.

 

[tar]

So, it doesn't take a genius to figure out why you don't trade EURUSD in Asia. Yes you might nick a few pips here and there a few times over out of that impressive 20 pip Asia range. Then lose all those gains and more in a single bum trade in a different, more volatile session.

That shouldn't happen cuz what happens in Asia stays in Asia

 

[counter_violent]

That shouldn't happen cuz what happens in Asia stays in Asia

hmm

 

[tar]

hmm

Few years back i had a trading partner he trades at the Asian session and i trade NY i wanted real action even London wasnt good for me , he did better than me in general then i convinced him to trade Crude with me at NY .....

 

[Jason Rogers]

The study is taken from 12 million live trades data , most FXCM clients are not American , but its fair to say that most retail traders are range traders , so no surprise there when there is more volume more volatility and more action traders caught off guard .

Here's the full study , check part 2 :

http://docs.fxcorporate.com/fxcm-traits-of-successful-traders-guide.pdf

I think you've hit the nail on the head here, Tar. The stats from that particular study are useful for range traders, but would not be as useful for scalpers as an example. The model strategy that was used to compile stats was Range Trading with RSI on a 15 Minute Chart.

 

[rsh01]

no idea what time, but can help out with what day....

POMO day:
http://www.zerohedge.com/news/2013-...-these-pomo-days-may-be-hazardous-your-health

so buy USDJPY:
http://www.zerohedge.com/news/2014-01-30/presenting-uspjpy-500

(sorry for all the ZH links, i do read other sites.)

gotta love these markets.