Intraday Forex Activity
Knowledge of intraday peaks of activity in the Forex market is necessary for a trader in order to correctly plan his working day and have an idea of all the opportunities that the market offers him.
Forex trading does not stop for a minute. Trading operations are carried out here 24 hours a day. Naturally, like other markets, there are hours of ups and downs. they are justified by the presence of time zones and the entry of traders from different continents into the market .
East – the beginning of the trading day
The trading day of the Forex market in the east begins. The activity here falls on the night hours, if we focus on GMT. The prevailing number of transactions falls on the yen, Sinagopur and Australian dollars, as well as New Zealand dollars. Currency fluctuations are negligible. as a rule, they do not exceed 50 points. The most active before lunchtime is Tokyo along with its stock exchange, closer to lunchtime, Singapore, which is considered the center of the Asian region, is gaining activity.
Europe is second in line
European traders enter the trade when the hour hand reaches 7.00 GMT. Residents of Paris, Luxembourg, Frankfurt, Zurich and other European cities are joining the Asian countries. Activity peaks around 11-12 pm when London comes into play. Lunch time is called “dead” or “boring” in the European part, as fluctuations are reduced to 10-20 points. but there are times when fluctuations reach 100 or more points. If you catch such a movement, then there is a chance of making a good profit.
Afternoon, namely 14:00 GMT, is characterized by the joining of the American trade. The movement of the maximum volumes of capital begins, as one of the largest stock exchanges opens – the New York Stock Exchange, which is the pioneer in determining the rates of movement of currencies. The maximum jumps are observed after 17.00 GMT. At this time, the European stock exchanges are closed, and the Americans are left in splendid isolation. This period of time is characterized as the most profitable for making profitable transactions, in which the rates fluctuate in the range of 400-500 points.
Proper planning of your trading day and taking into account all the peaks and troughs allows traders to trade with maximum efficiency, making a profit in the Forex market.