Best Time to Trade Currencies
Forex trading is a 24 hour market and there three main sessions in which to find profitable trades. These are the Asian, European and US sessions. The US session is dominated by New York, the Asian session is dominated by Tokyo Japan and the European session is dominated by the London market.
It's a good idea to study historical price data on your forex charts to see what time of the day best suits you. The best times to trade currencies for you won't suit the next guy. Study your charts to find periods of high volume that suit you. Look for times to trade when the average trading range is worthwhile.
Best Time To Trade Main Currency Pairs
EUR/USDThe Euro trades 15% of all volume during the Asiansession, but it can still have a good move. The Euro trades 39% of all forex volume during the European session.
GBP/USD
The Pound trades only lightly prior to and during the Asian session but can have some good moves. The GBP/USD can be quiet in the middle of the Asian session. In the European session, the pound trades about 23% of all forex trading volume.
USD/JPY
The Yen accounts for approximately 78% of all forex volume during the Asian session. The USD/JPY trading volume drops to about 17% during the European session.
The Asian session opens at 0.00 GMT or 7 PM EST and closes at 9.00GMT or 4 AM EST.
The European session is the largest market and opens at 7.00GMT or 2AM EST and closes at 17.00 GMT or noon EST.
The US session opens at 13.00 GMT or 8 AM EST and closes at 22.00GMT or 5 PM EST. The best trades occur in the first 3 hours.