Course 306 – Best Days to Trade Forex

Course 306 – Best Days of the Week to Trade Forex

Now we’ve learnt that the London session is the busiest of all the sessions, it’s also notes worthy to know that there are also certain days in the week when all the markets tend to exhibit stronger movement.

Below is a chart of average pip range for the major pairs for each day of the week:

TABLE

From the chart above, it’s obvious that trading is best done during the middle of the week, since this is when it’s most active in the markets.

On Fridays, business is pretty much half day because it’s usually busy until 12:00 pm EST and then the market slows down until it closes at 5:00 pm EST. This means we only work half-days on Fridays.

You can say “Thank God it’s Friday” right after 12:00pm EST.

Because of these factors, we’ve familiarized ourselves with the busiest and best days of the week for trading forex.

The busiest times are usually the best times to trade since high volatility comes with more opportunities.

TIME MANAGEMENT

It’s important that every trader learns when to trade and when not to. Though the forex market is open 24/7, it doesn’t mean that the market is active at all times!

Even if it were, you would need time to sleep. Remember sleep is necessary for healthy living and you’ll definitely need to take time out to rest if you plan on becoming a successful currency trader.

Here’s a quick guide on the best and worst times to trade:

BEST TRADING TIMES

• When two sessions overlap. These are also the times when major release of news reports that could start some volatility and set the next pace. Take note of the Opening and Closing times as well.
• The European session has overtime proven to be the busiest out of the three.
• Mid week usually shows the strongest movement, since the pip range widens for most of the major currency pairs.

THE WORST TRADING TIMES

• Sundays– everyone is taking time out to rest!
• Fridays– liquidity thins out after 12:00pm EST of the S. session.
• Holidays– Nobody is working.
• Major news events– you don’t want to find yourself between the devil and the deep blue sea.

And if you can’t seem to trade during the peak sessions? Don’t panic.

You can always be a swing or position trader. We’ll be learning about that later.

We advise you to open a Demo account for the purpose of this phase of learning.

Click on this LINK to create an FXTM Demo or Live Trading account >>> OPEN ACCOUNT

Click on this LINK to create a HotForex Demo or Live Trading account >>> OPEN ACCOUNT