Times To Trade Forex Live

Posted by admin 05/02/2014 Comments are off 480 views

Forex Live Trading Hours

This article is about the most suitable times for you to enter the forex live trading market.

When you enter the forex live trading market, you not only need to know how currencies move against each other.  You should be aware of the times when the market becomes busy to avoid getting caught in reversals and snap-backs when you are using high leverage.  You should set regular trading times in view of the constant fluctuations in the market and that three sessions are absorbed into the 24 hour trading period.

There are three main movement times and you should be alert to these times as this is when the market is most likely to gain momentum.  The most suitable times are at 06:00 GMT which is when the German Dax futures market commences.  Between 10:00 and 11:00am GMT, the London gold and oil fixings and the LIBOR rates are set.  At 15:00 GMT the closure of the European market takes place.  The other times you should be aware of when there could be major movement which may affect prices is between the hours of 03:00 and 04:00 GMT which is when the Japanese market re-commence after lunch, as well as upon closure of the NYMEX at 18:30 GMT.

Forex Live Movement Pattern

The general pattern for movement in the forex live market is:

  • Upon closure of the US session, the Asian market normally takes time at an attempt to reverse the direction of the US trade.  There is limited volume during this time which generally brings the pairs back in line
  • Once the European markets commence, it will normally remain in a similar direction as the Asian market
  • The futures trend will attempt to move the market back to where the US session left off and they normally set fixings upon commencement of the London market
  • The telephone bids for gold and oil commences at about 10:30am GMT.  This determines the crude and bullion morning prices which go through an adjustment period again at around 15:30 GMT
  • The LIBOR interbank rates are set at about 11:00am GMT by the British Bankers Association.  This determines the trend for the lending rates between the entrants in the financial market
  • The fixing that takes place in London normally pushes the futures market into alignment and this is what prompts the fair values on gold, oil and the lending rates.  This action has an impact on the value of the US dollar.  The movement forces the US into a bid to reverse the forex trend, particularly if there have been huge overnight movements in trading.

Forex traders have to be aware of different trends than the traders in the bond and equities markets.  The volatility in this financial market is currently experienced on a short-term basis.  This will probably stay like this until increased GDP is experienced worldwide.  For the moment, the forex market will follow the trends that are set by the futures market.  If there is expansion in the global market and interest rates are increased, this will change.  It is at that point that interest rate differentials will play a massive role in the valuation of forex live pairs.

You need to be alert to the triggers that affect your technical trades so that you can ride the momentum whilst it exists.

 

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