{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/learnpriceaction.com\/best-times-to-trade-forex\/#BlogPosting","mainEntityOfPage":"https:\/\/learnpriceaction.com\/best-times-to-trade-forex\/","headline":"The Very Best Times to Trade Forex","name":"The Very Best Times to Trade Forex","description":"In a previous lesson discussing why traders lose money, we talked about why most traders fail in the Forex market. This lesson showed how poor management techniques and incorrect use of leverage can dramatically affect a trader\u2019s success. In this lesson we\u2019ll take a look how you can fix these issues using statistics from millions […]","datePublished":"2018-11-09","dateModified":"2026-02-21","author":{"@type":"Person","@id":"https:\/\/learnpriceaction.com\/author\/ohwellcarlosgmail-com\/#Person","name":"Investagal","url":"https:\/\/learnpriceaction.com\/author\/ohwellcarlosgmail-com\/","identifier":2,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/99f2bbeea61d996cedb7b2da01d709d36fff00a7cace7f15c5e390bbf2a4a716?s=96&d=wavatar&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/99f2bbeea61d996cedb7b2da01d709d36fff00a7cace7f15c5e390bbf2a4a716?s=96&d=wavatar&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Learn Price Action","logo":{"@type":"ImageObject","@id":"https:\/\/learnpriceaction.com\/wp-content\/uploads\/2018\/09\/Learn-Price-Action-Logo.png","url":"https:\/\/learnpriceaction.com\/wp-content\/uploads\/2018\/09\/Learn-Price-Action-Logo.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/learnpriceaction.com\/wp-content\/uploads\/2018\/11\/31.png","url":"https:\/\/learnpriceaction.com\/wp-content\/uploads\/2018\/11\/31.png","height":627,"width":1200},"url":"https:\/\/learnpriceaction.com\/best-times-to-trade-forex\/","about":["Stock Market and Forex Lessons"],"wordCount":1067,"articleBody":"In a previous lesson discussing why traders lose money, we talked about why most traders fail in the Forex market.This lesson showed how poor management techniques and incorrect use of leverage can dramatically affect a trader\u2019s success.In this lesson we\u2019ll take a look how you can fix these issues using statistics from millions of trades. In particular, we will look closely at how you can find the very best times to trade Forex and enter trades to put the market on your side and what kind of strategy you could apply.Based on the data, there is a clear best time to trade Forex to give you a higher chance of profits. Table of ContentsToggleThe Best Time to TradeThe Best Times to Trade GBPUSDReversion to\u00a0The Mean\u00a0Buy Low, Sell High\u00a0Time in Trading Matters\u00a0RSI Trading Strategy\u00a0RSI Asia Range Trading Strategy\u00a0Other Currency Pairs\u00a0Strategy to Use\u00a0What to Remember?\u00a0The Best Time to TradeAs shown in the study below, Foreign exchange traders do the worst during fast-moving and volatile market hours.If a trader opens a position at a certain trading hour, it can potentially bring a greater chance of profits.The\u00a0chart below is from a major FX broker\u2019s 24 million trades placed across 5 popular currency pair.\u00a0It shows that performance can vary by the time a trader opens a trade.\u00a0\u00a0Based on the charts above, you can see that traders\u00a0have\u00a0a higher chance of making profits at certain market hours over others.There are 5 currency pairs above, but we will only focus on the currency pair of GBP\/USD as a relevant example.\u00a0Based on the hour-to-hour graph, you will likely\u00a0turn a net-profit only 47% of the time if you opened a trade on the GBP\/USD between the hours of 04:00 and 5:00 New York Time.On the contrary, if you opened a trade between 20:00 and 21:00, the profitability rate jumps to 55%. Quite a difference!\u00a0The overall success is 20% higher as the time runs. You are probably wondering why this happens. To further explain, let\u2019s see how GBP\/USD behaves in the market.\u00a0\u00a0 The Best Times to Trade GBPUSD\u00a0In this graph, you can see the changes per hour in volatility for the GBP\/USD.You can see the difference in volatility of 4:00 a.m. to 5:00 a.m. and 23:00 to 0:00 as the pips move from 22 to less than 4. As you can see, traders are more profitable when the market is far less active.This equates to traders have a higher end result in the Asian trading session.\u00a0 Reversion to\u00a0The Mean\u00a0Traders often follow a certain strategy styles called Range Trading or Reversion to the Mean.\u00a0\u00a0 Buy Low, Sell High\u00a0Reversion to the mean is a strategy where a trader identifies support and resistance areas (or overbought and oversold). A trader would buy at the oversold area (support) and sell at the overbought area (resistance).\u00a0\u00a0This strategy works well in markets that are meandering up and down. It can also work during the Asian trading session\u00a0as long as major price levels are not breaking and continue in a constant range. Time in Trading Matters\u00a0As just discussed, the time you enter your trade is critical and this becomes more important with the type of strategy you choose to use.There has been a strategy that approximates a trader\u2019s performance and simulated that strategy\u2019s performance on GBP\/USD. The results are very poor.\u00a0 RSI Trading Strategy\u00a0Rule: Buy when the 14-period RSI crosses above 30. Sell when RSI crosses below 70.\u00a0\u00a0Let us factor the time. This trade moves less at certain hours. Take it to your advantage and practice trading when the market\u2019s volatility is\u00a0low.\u00a0\u00a0 RSI Asia Range Trading Strategy\u00a0In the chart below, the system did not open any trades when the market is active at 6:00 a.m. to 2:00 p.m. Eastern Time. It shows the same strategy over the same window.\u00a0\u00a0Using the same simple strategy, but adding the time filter, the results were far more positive.Rule:\u00a0Buy when the 14-period RSI crosses above 30. Sell when RSI crosses below 70.\u00a0Only open trades before 6:00 and after 14:00 Eastern Time.\u00a0With this strategy, your trades will\u00a0turn\u00a0into\u00a0your favor.\u00a0 Other Currency Pairs\u00a0It\u00a0is\u00a0a given fact that\u00a0the Japanese Yen is more volatile than its European counterparts. Currencies are not all the same\u00a0after all. Below is the average hourly change in USD\/JPY from 2005 to 2015.\u00a0\u00a0A simulation with the same filter using USDJPY has been examined and it came with very average results.\u00a0\u00a0Time filters worked well on the currency pair of GBP\/USD and EUR\/USD.It is suggested that both of these currency pairs work best from 2:00 p.m. to 6:00\u00a0p.m.\u00a0time window.Although it may work on European currencies, data suggests this window does not work well with Asian currencies.The USD\/JPY, AUD\/USD, and NZD\/USD did\u00a0not show any improvements using different time windows. If this is true, then what strategy can you use?\u00a0 Strategy to Use\u00a0When trading European currencies, you can trade when the market is not active. Based on the given data, for the past 10 years, trading European currency from 2:00 p.m. to 6:00 p.m. (Eastern Time) showed that traders found success on range trading.Asian currencies \u201coff hours\u201d are flipped and the times where they experience less volatility is during their off market hours.\u00a0\u00a0 What to Remember?\u00a0Trading ranges typically occur when the price of an asset moves between support and resistance areas. The strategy above works best when the market is not active.\u00a0\u00a0Range trading can make multiple winning trades before it gives way for a breakout.The markets spend far more of their time range trading than they ever do moving in trends, so learning how to find profits within a range is crucial.In the final analysis, having good money management techniques and applying the best leverage while trading in the best market conditions can bring significant trading profits.\u00a0\u00a0NOTE: Statistics are derived from FXCM Inc. accounts excluding Eligible Contract Participants, Clearing Accounts, Money Managers, Hong Kong, and Japan subsidiaries from 4\/1\/2014 to 3\/31\/2015 across 15 most traded currency pairs.\u00a0 \u201cThe secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.\u201d\u00a0– Paul Tudor Jones\u00a0 "}