I received the following forex trading question from Loren the other day:
Thanks for all the great trading information.
I would like to start trading the Forex market. The time frame I want to trade in is approximately 7:00 pm to 11:00 pm central time zone. The trades would last one hour or less. Would you know where I can find the best currency pairs to trade during this time frame? Thank you for your help.
Obviously, the evenings for US traders are outside the really concentrated trading time period of the day, which is the Eastern timezone morning when New York and London overlap. A lot of major releases and market events happen during that period, and it’s when the biggest concentration of institutional level traders are active.
Day trading in the evening, as Loren is looking to do, means trading in the Asian morning. While all of the major currency pairs are liquid around the clock, that doesn’t mean they are always active in terms of price movement – at least least for a day trader’s purposes. That means focusing on the pairs most likely to see some action makes sense. In this case, that is going to be pairs which include the Japanese Yen (JPY) and the Australian Dollar (AUD).
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
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