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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.
Know the best days of the week to trade forex.
Below is a chart of the 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’s 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 and best days of the week to trade forexare.
The busiest times are usually the best times to tradesince high volatility tends to present more opportunities.
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 currency trader.
Every trader should learn when to trade.
Actually, scratch that.
Everytrader 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 Fortniteinstead.
Unless you play Fortnite a little too much already.
Here’s a quick cheat sheet of the best and worst times to trade:
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.
- You can also use our Forex Market Time Zone Converter which automatically displays which trading session(s) is open in your current local time.
- 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!
- When you just broke up with your significant other because you chose forex trading over him or her. Wait until the next London session instead.
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 trading currencies. Excited? You should be!
FAQs
In short, Tuesday, Wednesday and Thursday are widely considered to be the three best days of the week to trade. Forex trading is best at the busiest times. This often means the best return on your investment, as well as the most profitable trades.
Which day of the week is best for forex? ›
All in all, Tuesday, Wednesday and Thursday are the best days for Forex trading due to higher volatility. During the middle of the week, the currency market sees the most trading action. As for the rest of the week, Mondays are static, and Fridays can be unpredictable.
What day of the week is best to exchange money? ›
Typically, the least busy times of the week are Mondays, mid-week and the weekend (excluding Friday). These days have the lowest number of transfers in the week, so you might expect to see less fluctuation in the mid-market rate.
What days of the week are best for trading? ›
Historically, Wednesdays and Fridays have shown the best performance over the last 60 years. However, recent data, especially since 1995, indicates that Tuesdays have been consistently strong, leading to the development of the Turnaround Tuesday trading strategy.
What are the busiest days for forex trading? ›
Best Trading Days for Forex
Tuesday is the most active day of the week. Trading patterns quicken, and the market experiences the first spike of the week. Market volatility on Tuesdays could reach 120%-130% of Monday's volatility. Therefore, Tuesdays are one of the best days for forex trading.
What days to avoid trading forex? ›
Sunday to Monday
Since there isn't much economic activity on weekends, it's also unlikely that the market will adjust to new conditions. Sunday night is the only time of the trading week when gaps occur regularly for currency pairs. Therefore, Sunday is not the best day to trade the forex market.
What is the 10 am rule in stock trading? ›
Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.
What day has the highest exchange rate? ›
Midweek Currency Exchange
Statistically speaking, Tuesday to Thursday has, more often than not, presented more volatility, hence potentially better exchange rates. These are the most active trading days in the forex market due to maximum overlapping hours among global markets.
Which day is good for currency exchange? ›
A pattern observed over time slots Tuesday, Wednesday, and Thursday as the best days to trade currencies. This is primarily because the currency markets tend to be more liquid during these working days.
What time of day is the exchange rate the highest? ›
Currency can fluctuate throughout the day too, with the morning or late afternoon cited as the best times to buy. These are just trends though and the currency markets fluctuate regularly, so keep your eye on them if you're looking to exchange currency soon.
The logic behind this rule is that if the market has not reversed by 11 am EST, it is less likely to experience a significant trend reversal during the remainder of the trading day. This is particularly relevant for day traders who typically close out their positions before the market closes at 4 pm EST.
What is the 3-5-7 rule in trading? ›
The 3–5–7 rule in trading is a risk management principle that suggests allocating a certain percentage of your trading capital to different trades based on their risk levels. Here's how it typically works: 3% Rule: This suggests risking no more than 3% of your trading capital on any single trade.
What time is best to trade forex? ›
The London - New York Overlap (2:30 pm - 4:30 pm GMT) The European - US overlap is often considered to be one of the best times for trading forex. Trading in all the European currencies is heaviest during this period and offers the most liquidity for currency pairs involving the euro, pound sterling and Swiss franc.
What time is most active to trade forex? ›
The Best Times to Trade Forex
- The European-North American Overlap: 8:00 AM to 11:00 AM. This overlap is arguable the best time to trade forex. ...
- The Asian European Overlap: 12:00 Midnight to 3:00 AM. ...
- The Australian Asian Overlap: 9:00 PM to 12:00 Midnight.
Market opening on Monday can create weekend gaps leading to unexpected price movements; major economic calendar events on these days can create high volatility and uncertainty; however with brokers like FIBO Group's economic calendar forex service they can keep informed of all major economic events for an informed ...
Which forex session is most volatile? ›
Due to the large number of transactions that take place, the London trading session is normally the most volatile session. Most trends begin during the London session, and they typically will continue until the beginning of the New York session.
What are bad days to trade forex? ›
The final reason is that the risk of rapid moves in one direction reduces due to the many active traders from Tuesday to Thursday. However, on Monday and Friday, forex prices can move very quickly in one direction, making it more challenging to manage your risk.
When should I take profit in forex? ›
you should take profit a few pips before reaching there. you should make sure that this distance is at least as big as your risk distance, so you would get at least the same about in reward as you are risking, anything less than that, you avoid the trade.
What is the Monday trading strategy? ›
The Monday effect has been attributed to the impact of short selling, the tendency of companies to release more negative news on a Friday night, and the decline in market optimism a number of traders experience over the weekend. The Monday effect remains a much-debated topic.
