So we know that the London session is the busiest of all the sessions, but there are particular days of the week when all markets tend to move more.
Learn when the best days of the week are to trade FX.
The chart below shows the average pip range for the major pairings on each day of the week:
As the chart above shows, it is ideal to trade throughout the middle of the week because this is when the most action occurs.
Fridays are typically hectic until 12:00 p.m. EST, when the market almost shuts down until it closes at 5:00 p.m. EST.
This implies that on Fridays, we only work half-days.
Weekends always begin early!
Based on all of this, we’ve determined the busiest and greatest days of the week to trade forex.
Because high volatility tends to give more possibilities, the busiest moments are usually the best times to trade.
Manage Your Time Wisely
It is impossible to trade all sessions. Why would you, even if you could?
While the currency market is open 24 hours a day, this does not indicate that there is always activity!
Furthermore, sleep is an essential component of a healthy lifestyle! You need sleep to recharge and have energy to complete even the most routine duties, such as mowing the grass, talking to your spouse, walking the dog, or organizing your stamp collection.
If you want to become a hotshot currency trader, you’ll need to get some rest. Every trader should understand when and when not to trade. Knowing when it is best to trade and when it is best to sit back and relax.
Best Time to Trade
Of sure, when two sessions overlap! These are also the times when major news events are likely to cause volatility and directional swings.
Make a note of the opening and closing timings by bookmarking the Market Hours cheat sheet. The European session is usually the busiest of the three.
The middle of the week often sees the most fluctuation, as the pip range for most major currency pairings widens.
Worst Time 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!
Next Lesson: Forex Market Structure