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  • A day trader or longer-term swing / position trader, and
  • Using a trading strategy which relies upon trend / momentum or ranging price behavior.

Best Time of the Month to Trade Forex

Many traders believe that Forex markets tend to behave differently right at the beginning or end of a calendar month. The logic behind this belief is that large investment institutions often decide to change their investments at these times. If this belief is true, we should expect to see evidence that trend reversals and relatively higher volatility have been more likely to happen at the turns of months – Trade Forex Today.

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Trend traders

Should be aware that for them, the very start or end of a calendar month HAS NOT historically been the best time of the month to enter a new trade, as the price has an unusually high tendency to reverse its trend.

Range traders

Be aware that for them, the very start or end of a calendar month HAS BEEN a good time of the month to enter a new trade, for the same reason.

Best Day of the Week to Trade Forex

Day traders do not leave trades open over a weekend when markets are closed, so do not have to worry about risks associated with doing that.

Longer-term traders should be aware that there are important risks involved in leaving trades open over the weekend, as stop losses can be exceeded if the market opens at the start of the next week with a price gap beyond the stop loss.This means you can lose much more than you planned to in a worst-case scenario. You cannot exit Forex trades over the weekend, although there are a few rare cases of brokers providing weekend trading facilities to their clients.

Why trade CFDs on currency pairs?

It is widely believed that the Forex market usually begins the week quietly, then tends to increase in volatility as the week progresses towards the weekend. Historical data shows this is broadly true. The chart below shows the average price movement by day of the week for the major Forex currency pairs:

trend traders

If you are a day trader, it makes sense to aim to trade during the most volatile periods. This means that Monday might be a good day to not be in the market, while Thursday is a day not to miss.We can see that for all of the three majors, Monday tended to be the quietest day, while the day with the largest average price movement was Thursday – When are the Best Times to Trade FX – Trade Forex Today.

Best Day of the Week for Swing / Position Traders

I mentioned earlier that there is an advantage for longer-term traders in entering new trades as early in the week as possible. There are additional factors to consider depending upon whether your strategy is trading trends or trading ranges.

What is currency trading?

The chart below shows how 50-day breakouts performed over the next day by day of the week entered for the major Forex currency pairs:

forex pairs to trade and when

Best Time of the Day to Trade Forex

Whether you are a day trader or longer-term position trader, it will be useful to you to know whether there has historically been any extra advantage in entering trades at a special time of the day. This will be most useful to day traders, who need to trade intensively and must therefore make very effective use of their time – Forex Signals Dollar down

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It is obvious that a currency usually fluctuates the most in value during the business hours of its country, due to international trade. By this logic, if you live in Asia and you want to trade during your daytime, for example, you will see the most price movement by trading Asian currency crosses such as the AUD/JPY – Forex Strategies

Best Times Trade FX