Best Time to Trade
​
​
It is always important to consider volatility in the market before trading. You want volatility in the market or in other words you want other traders actively taking trades in the market in order to have fluctuations and movements in the market. If there is low volatility then the market is "sideways" thus not allowing you as easily to take trades and win trades. Volatility is normally found during times when Exchanges are open.
Let's cover the best times to trade or when exchanges are open for the associated markets.

Best times to trade (FOREX)

  • Market opening and market close will have the most volatility.
  • Power Hours for FOREX occur when exchanges overlap. A great example is the overlap of London and New York exchanges which can cause large movements. (8-11 a.m. EST)
    • Power hour is also considered the last hour of any exchange as many traders and institutions want their money out of the market before the exchange or trading day ends.
  • Be careful getting into trades near the close of exchanges to avoid fees like Swap fees (swap fees only apply to MT4 traders). At night if you are trading with an MT4 Broker you will also experience higher spreads.
  • *It is important to remember that although exchanges are open for an extended period of time Volatility is important. Volatility or the amount of traders trading at a certain time vary. But, normally we know that the first few 2-3 hours of each exchange are high volatility and are prime times to trade. The 1-2 hours at the end of an exchange can have surges of Volatility as well.

Best times to trade (US Stocks, Indexes)

  • Opening of the New York Exchange 8 am EST.
    • Normally the open of the NY Exchange is VERY volatile and any pre-market analysis you have made can be completely invalid. It is very important to protect trades during high volatile times and practice before trading during this time.
  • Close of the NY Exchange is 5pm EST.
  • Stocks / Options: First thing in the morning, market volumes and prices can go wild. The opening hours are when the market factors in all of the events and news releases since the previous closing bell, which contributes to price volatility. A skilled trader may be able to recognize the appropriate patterns and make a quick profit, but a less skilled trader could suffer serious losses as a result. So if you're a novice, you may want to avoid trading during these volatile hours, or at least, within the first hour.
  • Lunch Hour: At 11:30AM EST time the market can start to taper off due to the volatility dying.
  • End Of Day: In the last hours of the trading day, volatility and volume increase again. In fact, common intraday stock market patterns show the last hour can be like the first - sharp reversals and big moves, especially in the last several minutes of trading. From 3:00 to 4:00 p.m., day traders are often trying to close out their positions, or they may be attempting to join a late-day rally in the hope that the momentum will carry forward into the next trading day.

Best times to trade Crypto Currencies

  • Crypto currencies are part of the only market that runs 24/7 since it doesn’t rely on any central banking system or exchange that it needs to abide by.
  • Crypto Currencies however do have higher volatility times even though it is open 24/7. We can find surges of movements when the larger exchanges are open like the London and New York exchange. We can find movement on the off hours of the market as well but it is very important to not overtrade on markets that are even 24/7.