For traders in the Eastern time zone, the best times to trade the forex market are between three and five p.m. ET. That overlaps the New York and London sessions, which have high trading volume. During this period, big institutions are active in the market, and economic data are released. It is also a time of high liquidity and volatility. But trading hours are not the only factors that affect the value of currencies.
If you want to profit from the hottest days, there are certain times of the day. For example, the London session is the best time for trading volatility, while the Asian session is the least active during breakouts and trends. It is a good idea to collect separate data on Asian session prices, as the volatility will be much lower during the Asian session. Then, you can use that information to decide when to place your targets and stops.
When to buy and sell currencies in the Eastern time zone depends on the currency pair. There are two major overlaps during the day, U.S./London and Sydney/Tokyo. The overlap occurs between eight a.m. and noon. During this time, trading volume is the highest, with the euro, U.S. dollar, and the euro trading most heavily. The overlap also occurs at four a.m. and two a.m. EST.
When to buy and sell in the Eastern time zone, remember that major news events may affect currency prices. The European session is the busiest, and tends to exhibit the most movement. Pip ranges widen for most major currency pairs during this time. Sunday and Friday are relatively quiet, and liquidity dies down. You can use the European overlap to take advantage of the low trading prices. In Eastern time zones, however, it is best to trade during the European session.
If you re trading in the New York stock market, you ll need to know the difference between British and American daylight savings time. In the United States, daylight savings time does not coincide with the switching of European and American times, and you ll need to adjust the screen time accordingly. This may result in six hours of trading in the morning. If you re trading during the London session, however, the best time to trade Forex is at five in the afternoon.
If you re trading in the Eastern time zone, the best times to trade the forex market will be from three to six p.m. EST. The New York session is open for two hours after London closes. The European trading session opens at three in the afternoon, and closes at six in the evening, making the most profitable hours from three to six p.m. EST. So, what are the best times to trade the Forex market in Eastern time?
During this period, you can see active trading in several currency pairs. For example, AUD/USD is best traded when Australia opens. But, when trading the EUR/USD, the Japanese yen, and the NZD/USD are open in the early morning hours. If you want to take advantage of this overlap, you ll need to lock in most of your trading during this timeframe. For the EUR/USD pair, the best time to trade is before New York opens.
and many more ...