- Monday afternoon
Monday mornings may very well be a time to avoid when it comes to trading, but Monday afternoons are a different story. This is because the market really does start to warm up, with trading volume increasing. Again, you can’t expect the forex market to reach peak liquidity during this time, but it’s still well worth taking a peek at the market when Monday afternoon rolls around.
- When multiple trading sessions overlap
London ranks as the busiest trading session, with New York not being too far behind. As this is the case, you can expect the session overlap to be a busy period that provides plenty of trading opportunity. Many professional traders (or at least those who trade full time) often consider 14:00 GMT to be the optimum time to enter the market, as it’s the time period in which London is drawing to close and many are awaiting the shift to New York. While price movements can be choppy and somewhat unpredictable during this time, the big swings open the door to greater opportunities for profit.
There is another overlap between Sydney and Tokyo that occurs between 12:00 GMT and 07:00 GMT —while not as prominent as London/New York— it still proves to be a smart time to trade.
- During times of high liquidity (i.e. Tuesday through Thursday)
Things certainly pick up during Monday afternoons, but the forex market doesn’t reach peak liquidity until Tuesday at the earliest. The forex market is most noticeably active during the middle the week, specifically Tuesday mornings through to Thursday. If liquidity is what you’re after, look to keep the bulk of your trading locked to the middle of the week, as it’s when trading activity is at its height.
- London Session
Every trading session (or window) has the potential to get extremely busy, but of all the trading sessions, one remains far busier than all others. The London sessions (sometimes listed as the European sessions) are known for being the times when trading peaks, with approximately 30 percent of all trades taking place during these windows.
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