So now we know that the London session is the
busiest out of all the other sessions, but there are also certain days in the
week where all the markets tend to show more movement.
Below is
a chart of average pip range for the major pairs for each day of the week:
|
Pair
|
Sunday
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
|
EUR/USD
|
69
|
109
|
142
|
136
|
145
|
144
|
|
GBP/USD
|
73
|
149
|
172
|
152
|
169
|
179
|
|
USD/JPY
|
41
|
65
|
82
|
91
|
124
|
98
|
|
AUD/USD
|
58
|
84
|
114
|
99
|
115
|
111
|
|
NZD/USD
|
28
|
81
|
98
|
87
|
100
|
96
|
|
USD/CAD
|
43
|
93
|
112
|
106
|
120
|
125
|
|
USD/CHF
|
55
|
84
|
119
|
107
|
104
|
116
|
|
EUR/JPY
|
19
|
133
|
178
|
159
|
223
|
192
|
|
GBP/JPY
|
100
|
169
|
213
|
179
|
270
|
232
|
|
EUR/GBP
|
35
|
74
|
81
|
79
|
75
|
91
|
|
EUR/CHF
|
35
|
55
|
55
|
64
|
87
|
76
|
As you
can see from the chart above, it would probably be best to trade during the
middle of the week, since this is when the most action happens.
Fridays
are usually busy until 12:00 pm EST and then the market pretty much drops dead
until it closes at 5:00 pm EST. This means we only work half-days on Fridays.
The
weekend always starts early! Yippee!
So based
on all these, we've learned when the busiest times of the market are. The
busiest times are the best times to trade because they give you a higher chance
of success.
Managing Yo Time Wisely
Unless
you're Edward Cullen, who does not sleep, there is no way you can trade all
sessions. Even if you could, why would you? While the forex market is open 24
hours daily, it doesn't mean that action happens all the time!
Besides,
sleep is an integral part of a healthy lifestyle!
You need
sleep to recharge and have energy so that you can do even the most mundane
tasks like mowing the lawn, talking to your spouse, taking the dog for a walk,
or organizing your stamp collection. You'll definitely need your rest if you
plan on becoming a hotshot trader.
Each
trader should learn when to trade.
Actually,
scratch that.
Each trader should know when to trade and when NOT to trade.
Knowing
the optimal times you should trade and the times when you should sit out and
just play some Plants vs. Zombies can help save you a pound of moolah (pun
intended).
Best Times to Trade:
·
When two sessions are overlapping of course! These are also the
times where major news events come out to potentially spark some volatility and
directional movements. Make sure you bookmark the Market Hours cheat
sheet to take note of the Opening and Closing times.
·
The European session tends to be the busiest out of the three.
·
The middle of the week typically shows the most movement, as the
pip range widens for most of the major currency pairs.
Worst Times to Trade:
·
Sundays - everyone is sleeping or enjoying their weekend!
·
Fridays - liquidity dies down during the latter part of the U.S. session.
·
Holidays - everybody is taking a break.
·
Major news events - you don't want to get whipsawed!
·
During American Idol, the NBA Finals, or the Superbowl.
Can't
seem to trade during the optimal sessions? Don't fret. You can always be a
swing or position trader. We'll get back to that later. Meanwhile, let's move
on to how you actually make money in Forex. Excited? You should be!
