What is great about the market is that, unlike the stock market, it functions 24 hours a day. The currency market operates under three business centres across different time zones. To be honest, there is no such thing as a best time in Forex trading in Poland,as it all depends on the individual’s trading strategies, preferences and aims. What certainly matters however, is to find out which currency pairs “work” on certain times of the day in various parts of the world which will definitely contribute to the way you will look at trading.
Supply and Demand
Forex Trading in Poland,and other markets is composed of unfilled amounts of orders. The more orders there are and the higher the volume. The more volatility will be present in the market. Between set times, Institutions have the biggest orders in larger quantities as opposed to private traders, who function with enough freedom to trade as they like. These institutions function based on working hours of trading capitals which splits the 24 hour Forex trading day in 3 different sessions: American, Asian/Pacific, European.
Overlaps in Trading Times
In theory however, the best trading times are during the overlaps in trading times between markets. This will result in greater opportunities as overlaps will result in higher price ranges.
Tokyo & London (3 a.m. to 4 a.m.): This one hour overlap minimizes and large pip change to happen and has the least amount of action as most U.S. traders won’t be awake around this time.
Tokyo & Sydney (2 a.m. to 4 a.m.): Euro and Japanese Yen are a great pair during these times. This offers a higher pip fluctuation however, not as volatile compared to the U.S. & London overlap
U.S. & London (8 a.m. to noon): Volatility becomes very high and most trades happen when these two markets overlap based on the fact that the U.S. dollar and the euro are the most popular currencies.
Does it really matter what time I trade?
Is there really a best day to trade Forex in a week? Month? Year? Although not perfect, there are windows of opportunity to consider Forex trading that can be a little more profitable based on trends.
Based on market data, volumes and prices are usually chaotic in the mornings based on the probability that most traders would read up the news and make market decisions. Overtime, you will be able to recognize certain profitable patterns during these times however, as experienced by some traders who started, this was a source of heavy losses for them given their limited knowledge during those times. In a nutshell, as a novice, do not trade during these hours as these are usually the volatile hours and might need a certain amount of experience. Once you have gained enough experience in forex trading, the 15 minutes following the opening bell is the actual window of opportunity as most are offering big trades of the based on the initial trends