Times To Trade

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Times To Trade



Trading the OTC (over the counter) currency markets offers an opportunity to hedge stock and bond investing, but really is more of a traded market following the ebbs and flows of global commerce than it is an investment arena to plan retirement from. Getting to know six major currency pairs would seem an easy task when compared to the tens of thousands of stock and bond options available for analysis.

Forex trade is not all about how each currency will move against the Usd, just as important is knowing when the market will have momentum, because that is key to not getting caught in reversals and snap-backs whilst leveraged at 100:1.

Setting times to trade really does make a lot of sense with the near-term view that forex valuations carry, and the fact that each 24 hour period has to absorb three regional commercial market's trade, in Asian, Europe and the U.S.
There are three main forex moving times that regularly garner attention, and therefore offer an ability to move prices with momentum. They are the 2am EDT German Dax futures market getting underway, the 6-7am EDT London gold/oil fixings and LIBOR rates being set, and the 11am EDT European market close.

Outside of that, the return from lunch in Japan between 11pm EDT and midnight, and the closing of the NYMEX markets at 2.30 pm EDT really are the only other times that prices move substantially and then hold.

At the end of the U.S. session the pattern is for Asian markets to try and initially reverse U.S. trade direction, although the lack of volume tends to soon allow pairs to find and hold support areas. The European markets tend to move in the same direction as Asian trade, and then Chicago based futures movement will try to reverse things back in the direction of where the U.S. previously closed, and re-set their books as the London fixings are placed between 5-6am EDT.

At 10:30am GMT in London, telephone bids for the gold and oil fixings take place, something that sets the morning clearing prices for bullion and crude dealers that (are then adjust once again at 3.30pm GMT). At 11am GMT each day in London the British Bankers Association set the inter-bank LIBOR rates, something that sets the tone for lending rates between financial market participants.

The London fixings tend to force Chicago based futures markets into a re-alignment program at 06:00 EDT that replicates the newly set fair values on oil, gold, and lending rates, and by default tends to then impact Usd based currency values. It is rare for the U.S. not to push back each morning and reverse the pattern of forex trade that came before, especially if a sizeable move has happened in overnight forex trade.

Forex traders really need to know what is going to trigger the technical set-ups, and therefore be prepared to ride momentum while it lasts, and to cap expectancy and exposure in things are moving against the near-term trend. In the trading forex arena there are different things to look for than in the equity and bond investment world; a week in forex absorb fifteen regional equity market moves, and all of which are movinmg for varying commercial regions, and using foreign exchange to hedge commitments, repatriate overseas profits, align reserve values, and garner swap interest.

The European and NYMEX close (11am EDT and 2.30 pm EDT are the U.S. based things to get out of the way, because then, maybe, the equity markets can reveal where they really want to go, and by default send the Usd in the opposite direction. Traders looking for moves outside of 2am, 6am, 11am, and maybe 2:30 EDT, may just find themselves sitting and waiting, wondering why they just bought the high of the day that then reversed.

Try it out, take a look at a volume study in forex futures, or look at the longest daily 30 minute candles, and see on average what time they hit. Then look at the times that nothing happens. That is not luck, it is the forex market tagging along, following the ebbs and flows of global commercial trade.

As the global economy travels trades its way out of the business cycle trough phase, the leaning is towards looking at S&P futures trade to confirm near-term sentiment, and risk tolerance. The speculators are never too far away from the S&P in times of fear; either selling into the fear of loss, or buying into the fear of missing profits. That is the reason for so much near-term volatility, and that is how things will stay until signs of GDP expansion are seen globally.[/list]


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[Ray Wilkins]

I don’t think we can find times automatically but it’s created by proper analysis and that’s where we need to be good and to become good in this one has to be coming up with plenty of knowledge and experience which is not simple or straight forward for anyone working newly in Forex trading.

You have definitely helped us with such a good guide which can be really useful for scalpers like me. I usually don’t follow much of these thing, but this is serious good and currently with my broker OctaFX, I have got cTrader platform, so this enable me to know which session I am trading in and that’s how I can follow this so much better to collect decent amount of pips.

[Uncle Gober]

Asian session can indeed serve as the perfect time for scalping especially for the pair EUR/USD. I also like scalping technique. I get a profit in the forex business using scalping techniques. I need the speed of execution and low spreads to gain maximum profit. I am now comfortable trading with this system in the Tickmill

[gaban]

london session is the right time for me to start trading because it has a fast movement. Every trader must have a great time when to start trading, and each trader will vary for the right time to trade. Depending on the strategy of each trader

[Anatris]

I guess, The best time for trading is American session. All trading instruments are most volatily and you can make some points of profit. I usually read fresh forex analysis before trading during this session.

[Dawlat Ahmadzai]

In my view to be able to find right time to trade, it is important to have experience because with that we can make any time the best time to trade, but if we are lacking in experience than we will struggle with finding right time of trading. I am working up with Nova FX broker where they have excellent educational program for new comers, so it is easier to learn from that and this is what allows us to be successful easily without much trouble.

[Francis Walters]

I enjoy doing scalping, so for me best time is when the market is stable which in other words means when there is no news, it is the best time for trading especially if one is a scalper. I enjoy things so much more with OctaFX broker where they have excellent conditions with low spread of 0.2 pips for all major pairs while they also smooth trading platform where all my trades are executed straight away without much delay at all.

[Billy Prince]

There is no good or bad time of trading, it is just about right selection of planning and having strict money management which is what allows us the comfort level and is successful easily. Right now my plan gets going all thanks to support from FMbinary.com broker where I get 100% bonus on deposit, it is really cool amount to have and makes my task so much easier to do, so that is why I prefer such company and always get profits due to that.

[Rahul247]

Overlapping sessions are the most productive sessions for the trading purposes and you need ot trade in those sessions for that purpose of volatility.

[Brian Corn]

The forex market is that online place where traders can buy, sell, exchange, and speculate on currencies. This market is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and forex brokers and investors. I am also a trader of this market. I always trade with Tpglobalfx,one of the most trustable retail brokers in the market. In forex market brokers are the shadow of the trader. I think this broker helps me in making position in forex market like a shadow of mine.