Across the globe, forex traders from several countries participate in trading at different hours of the day. When market hours overlap for greater concentrations of traders, market trading volume and liquidity increases. It is during these times that price action is most likely to make it’s most volatile moves.
Use the live market hour tool above to anticipate the most likely times that high volatility is most likely to occur. Financial data releases and statements from central banks are also the most likely trigger events for large swings in currency exchange markets.
Conversely, trading hours that occur during observed holidays are less likely to contain large market swings, as there is no fresh data available to move markets in direction or the other. However, thin liquidity can set the stage for enhanced market reactions to geo-political events that occur outside of banking hours and anticipated data releases.
Many traders opt to utilize slow market hours as time to formulate strategy for the day or weeks upcoming session. This is a wise approach, as building a market analysis during high volume hours can lead to decreased accuracy and possible losses.
Strategy
Utilizing automated, computerized stop loss and limit orders available through your Forex broker is a recommended method of entering positions. This method will ensure that you never miss the best opportunity offered by price action, without having to sit in front of your computer 24 hours a day.
