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: USD/JPY retreat contained by 90.15 support - NASDAQ
FXstreet.com The Forex Market
Forex: USD/JPY retreat contained by 90.15 support
NASDAQ
FXstreet.com (Barcelona) - The Dollar has dropped against the Yen European trade and pullback from 89.75/80 week-top has extended below 90.45 intra-day ...
Daily GVI Forex Forex ViewForex Hound
Daily Forex Outlook - S&...
FOREX-Dollar slips on Fed speculation; euro gains - Reuters
Boston Globe
FOREX-Dollar slips on Fed speculation; euro gains
Reuters
By Tamawa Desai LONDON, March 12 (Reuters) - The euro rose to a one-month high against the dollar on Friday as traders covered short positions and the US ...
Dollar extends falls; euro at 1-mth high vs dlrReuters
all 308 news articles...
FOREX-Dollar little changed vs majors in volatile trade - Reuters
Reuters
FOREX-Dollar little changed vs majors in volatile trade
Reuters
... and there's concern that there could be problems in Portugal, Spain, Ireland," said Michael Malpede, market analyst at Easy Forex in Chicago. ...
WORLD FOREX: Dollar Weakens Slightly On Euro After Trade DataWall Street ...
Forex: USD/CAD plunges to 1.0160, 19-month low on strong canadian employment ...
Forex: USD/CAD plunges to 1.0160, 19-month low on strong canadian employment data
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 ...
Forex: USD/CAD plunges to 1.0160, 19-month low on stro...
Japan finmin says stable forex moves desirable - Reuters
Japan finmin says stable forex moves desirable
Reuters
TOKYO, March 12 (Reuters) - Japanese Finance Minister Naoto Kan said on Friday that markets should determine specific currency levels as long as exchange ...
and more »
foreign exchange - Google News
Pound foreign exchange rates: Friday 12 March - Economy News
Reuters
Pound foreign exchange rates: Friday 12 March
Economy News
Pound Euro exchange rate is lower while Pound Dollar exchange rate is higher in morning trade in London. The GBPEUR os lower by 0.025% with 1 GBP = 1.1015 ...
WORLD FOREX: Dollar Weakens Slightly On Euro After Trade DataWall Street Journ...
Gold Has Less Luster in China - Wall Street Journal (blog)
Telegraph.co.uk
Gold Has Less Luster in China
Wall Street Journal (blog)
Now China's chief foreign-exchange regulator Yi Gang said Tuesday at a news conference during the National People's Congress that ?currently a few factors ...
China's Looking at Diversifying Foreign Exchange ReservesFor...
New finance rules add to squeeze on China NGOs - Reuters AlertNet
New finance rules add to squeeze on China NGOs
Reuters AlertNet
Regulations posted on the website of China's foreign exchange watchdog will require most overseas donations go into special foreign exchange bank accounts. ...
China tightens restrictions on NGOs: ReportZee News
NGOs in China say threat...
Foreign Exchange - Market News International
Foreign Exchange
Market News International
... plans to double US exports will threaten China's global market share, while recommending that government maintain a stable yuan exchange. ...
and more »
Dollar Falls on Speculation Yellen May Help Keep Fed Rates Low - BusinessWeek
Boston Globe
Dollar Falls on Speculation Yellen May Help Keep Fed Rates Low
BusinessWeek
?Yellen is the Fed's extended-period language personified,? said Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London. ...
FOREX-Dollar slips on Fed speculation; euro gainsReuters
all 30...