Let’s Look at The Markets Time Frame: You may have noticed that when Sydney’s market is open, Tokyo’s market will open after 2 hours. As you can see between 13-17 GMT, both New York and London markets are open. Now another important factor is markets trading volume time frame and traders should know when the […]
Let’s Look at The Markets Time Frame:
You may have noticed that when Sydney’s market is open, Tokyo’s market will open after 2 hours. As you can see between 13-17 GMT, both New York and London markets are open. Now another important factor is markets trading volume time frame and traders should know when the market trading volume is the highest and when it is the lowest.
Look at the chart below:
The above chart shows that EUR/USD has the highest volume and EUR/GBP has the lowest.
These trends can help us to understand the trader’s behavior at different times.
For example, we know that the highest volume currency pair is EUR/USD and the highest trading volume based on countries is related to the United Kingdom. It can show us that the United Kingdom traders trade on EUR more than GBP.
Japanese traders share 3.5% of transaction volumes during the day but in the chart, you can see that after EUR the JPY has more trading volume and this proves that the traders ,from other countries, are eager to trade on JPY.
According to provided information, we understand that the highest market volume is between 13-16 GMT and that is because Europe, USA, and London markets are open at the same time.
What Times Are The Best Trading Hours in The Options Trading?
The answe depends largely on your trading strategies. Some traders work better in a fast market movement with high volume and high volatility. Other traders are better when market volatility and volume is low. It all depends on the trading strategies you use.
While there is a simple way to understand the best time frame for your trading strategies.
- Open different demo accounts for trading Options. Depending on the strategies, you use open different demo accounts. For example, if you have 4 strategies to open orders, you should open 4 demo accounts.
- Set your demo accounts with different strategies separately. For instance, if you have one strategy on Moving average and another one is on Fibonacci, you must open your moving average strategy on your first demo account and open your Fibonacci strategy on another demo account. Don’t trade on your first account according to your Fibonacci strategy.
- After at least 1 month, export your trading history and analyze your trading according to the market time. If you analyze correctly, it’s very easy to understand the best time to apply your trading strategy.
After 1 month, on your Fibonacci account, you will see that the most winning positions are between 10:00-14:00 PM and most of the trades you lost on your Moving average account were between 08:00 – 15:00 PM then you can utilize it on your real account. You should trade with your Fibonacci strategy between 10:00 – 14:00 and leave your Moving average strategy at 08:00 – 15:00
Have a Profitable Trade.