Best forex currency pairs to trade - South Africa Forex Brokers Reviews - Top Forex Brokers in S. Africa |

We analyzed over 12 million real trades conducted by a major FX broker, and we found that trader profits and losses could vary significantly by time of day.

In fact, this trading style means that many of them have trouble cugrency successful in forex because they are trading during the wrong time of day. The chart shows the profitability of traders with open positions broken down by hour of day across the five most popular currency pairs.

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Those profitability statistics can certainly vary on a day-to-day basis, but the patterns are impressively stable over the course of the year. You can see that periods of strong trader performance line up with low-volatility trading hours.

Traders tend to see the best results during the Asian trading session, and the chart below shows that the Euro tends to move far less through this period. To see why volatility lines up so well with performance, we need to look at real trader behavior.

If a currency has fallen and is trading at or near significant support levels, the range trader will often buy. If the ti currency then trades higher and near important resistance, that same trader sells. This can work if price is not breaking major price levels and continues trading within relatively narrow ranges.

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Of course that same trader would do quite poorly if price broke significantly above resistance or below support. How do we avoid the worst market conditions for this particular style of trading?

The results are not good. When the period RSI crosses above 30, buy. When RSI crosses below 70, sell.


Yet once we factor in the time of day, things become interesting. This next chart shows the exact same strategy over the exact same time window, but the system does not open best forex currency pairs to trade trades during the most volatile time of day, 6 AM to 2 PM Eastern Time 11 AM to 7 PM London time.

The difference is dramatic.

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curreency Only allow the strategy to open trades after By sticking to range trading only during the hours of 2pm to 6am, the typical trader would have hypothetically been options futures strategies more successful over the past 10 years than the trader who ignored the time of day. Of course, not all currencies act the same.

For example, the Japanese Yen tends to see more volatility trads Asian hours than the Euro or British Pound; these are the hours of the Japanese business day. The poor results speak for themselves.

We might range trade these currency pairs during the 2 PM to 6AM time window. Apirs, our optimal time window does not work well for Asian currencies. This is due to the fact that these currencies are more often subject to large moves during Asia Session than the European currencies.

Many traders have been very unsuccessful trading these currencies during the volatile 6 AM to 2 PM time period. Asia-Pacific currencies can be difficult to range trade at any time of day, due to the fact that they tend to have less distinct periods of high and low volatility.

Equities on the other hand are traded without leverage. Then pick a currency pair e. Now you are a trader in a market used by millions of people all around the globe.

Check out your current profit or loss in the Open positions window. You can keep this position as long as you like.

And when you no longer wish to keep your position, just close your trade by pressing the X button in the Open Positions window. This is called long position.

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The short trading enables you to currenyc advantage if the exchange rate is going down. Trading may not be suitable for everyone and can result in the loss of all your invested capital.

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Description:Dec 12, - Summary: For most forex traders, the best time of day to trade is the Asian trading session hours. European currency pairs such as EUR/USD.

Views:57315 Date:27.08.2016 Favorited: 5899 favorites

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