One of the questions I am always asked is which are the best times, and possibly more importantly, the most dangerous times to trade the currency market and Friday afternoon was a classic example for the euro vs dollar. Earlier in the week the euro had broken through support at 1.2750 with the chart forming a wide spread downbar supported by good volume. This signal was taken by many that the Euro had finally broken out (including me) and that in the next few days we could see a move down to 1.22 and beyond in the next few weeks. Thursday’s candle was a doji with stopping volume and this alone should have alerted us that everything was not going to plan. By Friday afternoon when London had closed the price promptly reversed.
Friday afternoon can be a very difficult time to trade and is often when seemingly contrary moves can and do happen. It will be interesting to see what happens when the market reopens on Sunday evening.
For a free report on the best time for trading currency leave your details in the comment box.
Hi Anna!
Although I’m not a woman I read nearly every page from your websites and I find it very informative. So I’m very interested in your opinion about the best time for trading currencies. Would you also tell me what broker you are using for your short-time trading? I’m trading with FXCM and I’m not sure if they are really good…
Greetings from Hamburg, Germany
Frank
Hi Frank – You are most welcome and thank you for your kind comments. I have been asked this question so many times that i am now preparing a free download. However, in summary: London session is ideal time for fx trading as London is still the fx capital of the world so all major players are involved. Contributions from Geneva, Frankfurt and Paris all make this session very important and you could say this is when the “real money” is in play. The market is at its deepest at the overlap when New York joins in. Demand for Latin American currencies and the Loonie will also increase. Asian session is a more fragmented market which can lead to erratic price action. Important times to be aware of: (GMT) 00.00 Sydney open. 11.00 Libor spot fixing, 15.00 London Fix, 17.00 (NY options cut, 18.00 Europe closes books, 19.15-19.30 possible last minute volatility from Chicago traders. Hope this helps and will let you know when the complete download is ready.
Re: brokers – always make sure your broker accepts your trading style. FXCM now confirm they are a “non dealing” broker – so should allow you any trading strategy – including scalping. My advice is to try as many demo accounts as possible and ask lots of questions.
Regards.
Anna
Hi Anna,
I am really elated on your work and your potentiality in the FX. Though i am still an up-coming trader but greed, indiscipline and trading aimlessly really ruin me mentally in this business. I opened my first account 500dollars with poltekfx but later realize that they are termed bucket-shop, infact i blow the account. Funded another with FXPRO and i just 2weeks i traded the account balance turned to 3100 and after withdrawing 500 buck from the account, i went into lossing sphere.
I lost all and funded, 150, 100, 300, 400 and now i have only 121.71 in my account. i lost my colour and i don’t just know the right word to say my state of mind…..but i really want to be independent and trade forex, i have to hang on…i just know that following the principle of more experienced traders like you, will surely put me on focus.
I have decided to trade Gbp/usd and i really need your help, i trade 4hr time frame, with 55ema and though you advised us to keep off the market but i usually see good trading opportunity using 4hr/55EMA…for example, following the trend, i normally trade the market when the consolidation reached the 55EMA, and when there is no momentum i always enter market, knowing that the market will go back testing the previous low.
But fear currently won’t allow me to enter market this day….what is your simple suggestion or advise on my psychological pitfall.
Please will it be possible for you to alert me on certain crucial price target.
Kevin