Singkilisme.com – Knowing when to enter the forex market is essential for executing a good technical trading strategy. There are many pitfalls experienced by both novice and experienced traders. This is because they enter the market when the likelihood of successful forex trades decreases. So what is the best forex trading hours / time to be successful in trading and why?
The best forex trading time / hours to start entering forex trading is when there is a high volume in the currency market. Since the forex market is open 24 hours a day, it is best to find a time when markets in different zones are trading at the same time.
The Right Forex Trading Hours to be Successful in Trading
Each forex market in the world operates from 8:00 to 16:00 in its own time zone. To take advantage of your growing trading opportunities, you need to see when the forex markets in various countries meet (overlap). At this time when many markets are open, there is generally the greatest movement in volume and pips.
For example, it is best to trade EUR / USD, USD / CHF or GBP / USD between 8:00 am Eastern Standard Time (20:00 WIB) and 12:00 EST (00:00 WIB). This time it’s fair because the market in the US only opens at 8pm WIB as the European market ends that day.
The correct forex trading hours for trading are in the middle of the night from 1:00 am EST (1:00 pm WIB) to 3:00 am EST (3:00 pm WIB). This is because much of the trading develops when Asian markets close and European markets open.
The Australian and Asian markets that overlap between 7pm EST and 10pm EST (10am) also offer good opportunities.
In general, you can turn off your computer and not worry about looking for operations at the right time. When is it? That is, from 4pm EST (4am WIB) to 6pm EST (6am WIB). This is when the US markets are closed and there are no overlapping markets at that time.
So even though profitable trades can be made, the trading volume is much lower and large trades are less likely to develop.
The Canadian market does not play a major role in influencing the market, so follow US market trades only when European, Asian or Australian markets are open.
Many currency pairs tend to tend in the same (parallel) or opposite (reverse) direction. Forex traders can use this information to plan to trade more than one known pair to have a high probability of moving in the same or reverse direction.
The general rule is that the pairs listed below tend to be parallel. Euro and Cable (GBP) tend to move together.
- EUR / USD and GBP / USD
- USD / CHF and USD / JPY
- AUD / USD and NZQ / USD
And the underlying pairs tend to move more in reverse. The euro and Switzerland tend to move in reverse.
- EUR / USD and USD / CHF
- GBP / USD and USD / JPY
- AUD / USD and USD / CAD
Finally, remember that during transactions, Bulls And Bears make money, but the pigs are slaughtered. Don’t be too greedy.
Trade forex with proper equity management and never risk more than 2% of your trading account in a single trade. Look for a pip profit of 10% -30% and move on to the next trade.
Building small but consistent profits will add to big long-term gains. Knowing the forex trading hours when markets overlap is important.
And use information about parallel and reverse relationships to determine whether to trade multiple currency pairs at the same time. Good luck with your trading!