[EDU-Bite Sized Mini Series] When to trade for best bang for $$?

Hello fellow traders , my regular and new friends!
Welcome and thanks for dropping by my post.

Okay, let's get started on today's topic. Knowing when to trade and when NOT to trade is very important. This is the "timing" element which is also a crucial part of trading. And, this is especially important if you are looking to trade on a lower timeframe!

Understanding the different trading sessions in the forex market and identifying the best times and days to trade can significantly improve trading success. Here's a breakdown of the major forex trading sessions and their characteristics:

Asian Session (Tokyo/Singapore/Hong Kong):

The Asian session begins with the opening of the Tokyo market, though the AUD and NZD starts trading earlier than it. It's known for lower volatility compared to other sessions, with currency pairs like USD/JPY and AUD/USD often experiencing increased activity.At times, if there's a important news release such as FED interest rate release or Non- farm payroll on a Friday. The preceding Asian Session could have "spill over" activity and increased in volatility in the FX market.

European Session (London):

The European session, centered around London, is considered the most active session (besides the US). It often sees high liquidity and volatility, making it ideal for day traders. Major currency pairs like EUR/USD, GBP/USD, and EUR/GBP typically exhibit significant movements during this session.

3. North American Session (New York):

The North American session overlaps with the end of the European session, creating a period of increased activity. Day traders loved the volatility during this period of time, more over key news releases could be catalyst for further volatility. It's characterized by liquidity from both European and American traders. Currency pairs involving the USD, such as EUR/USD, USD/JPY, and GBP/USD, are particularly active.

4. Best Times to Trade:

To be specific, the best times to trade forex are typically during the overlap of multiple trading sessions when liquidity and volatility are highest. This occurs during the overlap of the European and North American sessions, known as the "London-New York" overlap, which occurs from 8:00 AM to 12:00 PM EST. Another optimal period is during the overlap of the Asian and European sessions.

Best Days to Trade

While forex markets are open 24 hours a day, five days a week, certain days tend to offer more trading opportunities. Tuesday, Wednesday, and Thursday are generally considered the best days to trade, as they typically see higher volatility and more significant price movements compared to Mondays and Fridays.

By understanding the characteristics of each trading session and identifying the optimal times and days to trade, you can enhance your trading strategies and capitalize on the most favorable market conditions.

Do check out my recorded video (in trading ideas) for the week to have more explanation in place.
Do Like and Boost if you have learnt something and enjoyed the content, thank you!

-- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! --

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Disclaimers:
The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes.
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