Trading Forex with high liquidity can make significant profit. Then when is the best time and day for Forex Trading. Let’s take a look at the best time and day for Forex Trading.
When is the best time and day for Forex Trading in the Forex market? Which time of day and day of the week are the most likely to make a profits? At the time of the two sessions overlap, Forex market has the greatest liquidity and is the best time to trade Forex. The time zone where two sessions overlap is as follows.
Tokyo – London Session
When Tokyo and London sessions overlap, there is not so much liquidity. Typically, there are not many transactions in Asia sessions, and in the late evening time, most traders fall asleep. Also, there will be little liquidity, since people go to work in Europe in this time zone.
London – New York Session
I can assure you that this is the busiest time when London and New York sessions overlap. The two largest financial centers (London & New York) participate in the trading and the market of this time zone moves the most. Especially when new economic information emerges in the US and Canada. 66% of total foreign exchange transactions are traded at times when the London and New York markets with the world’s largest trades overlap.
If so, what day of the week is the day when the largest number of transactions occur?
The average number of major currencies is sorted by day of week, and the most transactions are on Tuesdays, Wednesdays, and Thursdays. On Fridays, only 12:00 pm EST is busy, and trading starts at 5:00 pm when the market closes. This means that in the days above, the biggest price volatility occurs and at the same time there is a great opportunity. You can’t participate in all sessions while trading. So traders involved in forex trading should know when to trade and when to trade.
In conclusion, the best time and the worst are as follows.
The best time
When two sessions overlap, there is a lot of important economic news at this time, which is very volatile. The European session is the most active session of the three sessions, with the greatest price volatility occurring on weekdays, Wednesdays, and Thursdays.
The worst Time
The worst day is Friday which is the end of the US market, where Sundays, holidays and liquidity are falling significantly.