The Best Time to Day Trade the Forex Market
Cynthia Macy
1. New York open 7:00 AM to 4:00 PM 2. Japanese/Australian open 7:00 PM to 3:00 AM 3. London open 3:00 AM to 11:00 AM
** Often, the best times to trade is at the beginning 3-5 hours of the above mentioned opening times, because the major currency pairs tend to move the most in a particular direction. Especially when there are economic news releases.
THE ABSOLUTE BEST TIME TO TRADE IS FROM 3 AM TO 11 AM EST.
The New York and London trading sessions overlap between 7 and 11 am EST. The volatility is much higher and trading opportunities are much more frequent with bigger moves, especially in these four hours.
The currency pair that moves the most during these hours are the Usd/Chf (#1), then the Gbp/Usd, then the Eur/Usd, then the Usd/Jpy.
This is when you can make 30-100 pips trading in just a few minutes or hours, using any of our strategies in any time frame, especially around news releases.
If you need help in converting EST time zone to your time zone, please use this world time zone converter:
http://www.worldtimezone.com OR http://timeanddate.com/worldclock
DAILY FORECAST WEBSITES
First thing in the morning, I go to http://www.fxstreet.com to check out some forecasts and news release times for the day. I always check before I start trading and I write down the support/resistance, trend, trading range, target highs & lows, news release times, etc. on my Daily Trading Sheet, which is provided in the Day Trade Forex Advanced course.
This is an interesting forecast site that I also like:
http://www.fxstreet.com/nou/content/107780/content.asp?menu=techn icalanalysis
Another place to find out when the world economic news releases are: http://www.forexnews.com and scroll down to the bottom of the website for the list of the current week news releases that impact the Forex markets.
Most often, the economic news release is scheduled for 8:30 AM EST. If you are in a trade at this time, make sure you have your stop loss at a place you are happy with. The volatility is scary and fast, but if you aren't already in a trade, you can jump in once you see the major trend, usually after the first 5-15 minutes. Look at a 30 min chart to see the major trend.
IMPORTANT NOTE: Most of the forex brokerages have now stopped guaranteeing their stops during fundamental news release times, as the volatility is so extreme, that the price can often move faster than their servers can keep up with. Thus, please be very aware that getting into and out of a trade when you want, can sometimes be next to impossible. You can possibly encounter several things during news release times: whipsaw of the price, slippage, freezing of the platform, disconnects, re-quotes of price, loss of money, etc. Don't bother calling up any dealing desk to complain, as they are all now distancing themselves from this problem, and they all have a disclaimer on their websites. It is a buyer-beware type of situation. If you choose to play the news, you have to be aware of it's risks. The rewards can be very great in just a few minutes, or it can go against you. Make sure that you immediately put in your stop.
About the author:
Erol Bortucene and Cynthia Macy are co-authors of 'The Day Trade Forex System: The Ultimate Step-By-Step Guide To Online Currency Trading'.
Visit: http://www.daytrade-forex.com
Sign up for the free 'Trade of the Week' for examples of actual trades using the Day Trade Forex System.
Visit their other websites at:
http://www.successtrading2000.com http://www.shortterminvestingsite.com http://www.professionalforextrading.info
The latest information and news on Forex:
FOREX-US dollar slides broadly on easing growth fears - FOXBusiness
msnbc.com
FOREX-US dollar slides broadly on easing growth fears
FOXBusiness
NEW YORK (Reuters) - The dollar slipped againstmajor currencies Thursday as better-than-expected US dataon housing ...
FOREX-Euro edges up; market cautious before TrichetReuters
FOREX: Bond auctions boost euro currency trading?iF...
WORLD FOREX: Dollar Up Vs Yen; May Drop Depending On Jobs Data - MarketWatch
WORLD FOREX: Dollar Up Vs Yen; May Drop Depending On Jobs Data
MarketWatch
TOKYO (MarketWatch) -- The dollar rose slightly against the yen in Asia Friday as stable Japanese share prices prompted hedge funds to ...
and more »
CFTC Decision On Retail Forex Trading Effective As Of October 18, 2010 - Dail...
CFTC Decision On Retail Forex Trading Effective As Of October 18, 2010
Daily Markets
After months of speculation, the CFTC finally released the rules regarding retail foreign exchange (Forex) transactions. The rules implement provisions of ...
New CFTC Forex Trading Rules Call For 50:1 LeverageForbes (...
FOREX-Dollar on defensive after data whets risk appetite - Reuters
Corporate FX
FOREX-Dollar on defensive after data whets risk appetite
Reuters
TOKYO, Sept 2 (Reuters) - The dollar was on the defensive on Thursday, retaining most of the losses sustained the previous day when upbeat ...
Dollar defensive after trading lower on risk appetiteCorporate FX
all 19 news articl...
EUR/USD: (1.2825) Pair currently above 1.2780 - Forexrazor
EUR/USD: (1.2825) Pair currently above 1.2780
Forexrazor
High-Risk Warning Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work ...
and more »
foreign exchange - Google News
Japan, Indonesia, China, India: Asia Bond, Currency Preview - BusinessWeek
Daily News Corner
Japan, Indonesia, China, India: Asia Bond, Currency Preview
BusinessWeek
Taiwan: The Central Bank of China (Taiwan) will report foreign-exchange reserves data for August. The reserves were $370.1 billion in July. ...
Japan Said to View US Opposition as Yen Intervention ObstacleBloomber...
Trading In Emerging/Exotic Currencies Increases - FavStocks (blog)
Globe and Mail
Trading In Emerging/Exotic Currencies Increases
FavStocks (blog)
The Bank of International Settlements (BIS) has just released the results from its Triennial Central Bank Survey of Foreign Exchange and Derivatives Market ...
A Brave New World In Currencies?Wall Street Journal (blog)
Trend ...
China PBOC Hu Says Developing Econs Face Reserve Asset Losses - IMarketnews.com
Reuters India
China PBOC Hu Says Developing Econs Face Reserve Asset Losses
IMarketnews.com
Hu Xiaolian, a deputy-governor of the People's Bank of China and former director of the State Administration of Foreign Exchange, said that developing ...
Heavy in dollars, China warns of depreciationReuters
C...
Daily Foreign Exchange Market Summary - International Business Times
Daily Foreign Exchange Market Summary
International Business Times
The US dollar continues to weaken against a basket of currencies after mixed economic news. The Labor Department reported new claims for unemployment ...
and more »
CFTC's Retail Currency Rules Back Off Strictest Leverage - Wall Street Journal
CFTC's Retail Currency Rules Back Off Strictest Leverage
Wall Street Journal
That's the same limit voluntarily imposed by some dealer firms already in the US and it's also in line with retail foreign exchange leverage rules in some ...
CFTC Issues New Forex Trading RulesNew York Times (blog...