Do you enter breakouts only to see them fizzle out? Have you ever wondered why? The 24 hours a day, 5 days a week market hours that the forex community proudly and happily offer are not really a boon. On the contrary, it can be a trap in many ways. And this is the main reason for these failed movements.
The market requires a certain amount of volatility and liquidity for a setup to ferment and then be confirmed. Let’s say a group of buyers pushes the market past a resistance level. The next step requires another set of buyers, mostly fresh hands. Because
- Traders don’t double down when they see their formula is working. Instead, they tend to close and cash out.
- Traders who fail because of a breakout usually lament: “Why does this always happen to me?” – and also located in the bay.
Therefore, we need new hands. But where can we find it?
Traders from another time zone or geography can come to your aid.
Otherwise, you will have to trade during hours when traders are tireless and can push price action beyond resistance or support, and then test it all out yourself.
After all, trading is like a relay race. You need to pass the baton to someone to carry it to the finish line.
The bottom line is that the market hours you trade Forex contribute to your success. So make sure you do it during the best hours of the forex market.
Forex Market Hours
The forex market works 24×5. But prominent exchanges do not. Their working hours
Sydney Exchange: from 17:00 to 2:00 (EST)
Tokyo Exchange: from 19:00 to 4:00 (EST)
London Stock Exchange: from 3:00 to 12:00 (EST)
New York Stock Exchange: from 8:00 to 17:00 (EST)
It is during these periods that hedge funds and banks actively trade. So the market never falls short of firepower. And they do all the hard work for you – the breakthrough and the completion. You just need to land straight from the launch pad and ride out the turbulence. You will definitely reach your destination.
Best Market Hours for Forex Trading
How can we revive it even more? If one is good, then two is better, often this becomes the best.
As you can see in the image, there are times when the hours of two exchanges overlap. Banks and hedge funds from the two supereconomy either fight each other or succeed hand in hand. You cannot get better volatility and liquidity than these periods.
New York-London Session: The Best of the Lot
from 8:00 to 12:00 (EST).
Very volatile and can even petrify you from time to time.
The most important market factors such as employment, GDP during this period, data on inflation in the US, UK and Europe are released. So the market gets momentum one by one.
Tokyo – London session: Quickie
from 3:00 to 4:00 (EST).
It may seem like it’s only an hour, but it doesn’t matter if you’re a scalper or a day trader.
In addition, the hour before and after this period also has decent volume.
Look for mountains among the hills in the tome. This is a New York-London session with increasing volume. But if you look closely, you can see a ridge every day 4 hours before the mountains. This is the Tokyo-London session. These are the best market hours with the most forex trades.
Tokyo – Australian Session: Underling
From 19:00 to 2:00 (EST).
Although this is not as important as the previous two, it does matter sometimes.
It takes center stage during FOMC meetings as the press conference and minutes come to the fore after the US market closes.
The rest of the days it makes for decent volatility as the Asian exchanges are open during those hours.
AUD/USD, NZD/USD, AUD/JPY and NZD/JPY also move noticeably during this period.
Can you track the hours of the forex market?
For non-western traders, times can be fuzzy. Let’s make it easy for you.
There is a tool that can display the whole session on your charts and also give OHLC for the period.
This is the session indicator. And it’s completely free!
Voila! You didn’t see him coming, did you?
Get the Session indicator for free to identify the best hours in the forex market at a glance.
It makes your life as a trader much easier!
The prerequisites for a good setup are volatility and liquidity. And the best watches on the market can guarantee it.
But this does not guarantee success and profitability, which depend entirely on your strategy.
The strategy should be the basis for decision making; however, use such clever nuances as a catalyst.