The time frame to trade is very important in trading FTT, Forex on any Broker like Olymp Trade, IQ Option, Binomo. Learning indicators, strategies, candlestick charts is not enough, the time which you choose to trade greatly affects your trades. This article will analyze the reasons why you need to choose your trading time to make more money. This is a great way for traders newly approach trading.
Strategy for choosing a reasonable trading time
Time frame selection is very important and is considered an art in trading on exchanges such as Olymp Trade, IQ Option, Binomo.
Why is that?
Because for each time frame there will be an advantage and a different trading style for each asset. Suppose you are a person who likes to trade FTT with a short time of 1 minute or 5 minutes, you need to choose currency pairs that are less volatile by news. If you are a follower of news a lot and tend to trade long-term, you will choose currency pairs with strong fluctuations that are affected by the current news.
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Trading time frame selection
When trading Forex, you can trade 24 hours a day and 5 days a week. If you are new, then you need to know that there is no single forex market.
And with that, different countries will have different posting times, which will affect the price of the currency pairs.
But they all share the same rule, that is, the country posts the news from 7 am to 5 pm. And foreign currency transactions also increase during these days.
![Choose a safe trading time frame when price is affected by news](https://traderrr.com/wp-content/uploads/2020/09/news-affect-to-currency-pairs-when-trading-ftt-forex-1024x869.jpg)
Here are the important time zones you need to know:
- Asian: GMT +9 (Tokyo), GMT +10 (Sydney)
- European: GMT +0 (London), GMT +1 (London – Daylight Saving Time )
- Americas: GMT -5 (New York)
Avoid market opening and closing times
You should avoid the following trading time frame if you are an indicator-based trader:
- The start and end times of a timeframe session.
- At the beginning of the week and the weekend.
If you want to trade at this time, you need to be a news connoisseur, a guy capable of predicting news to choose when to buy/sell. Or you have a fast and accurate source.
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Avoid public holidays
You need to pay attention to the public holidays of banks in the UK and the US. In the absence of transactions in these countries, the transaction volume will be lower than normal.
Characteristics of each time frame
The activity and volume of a currency is affected by the moment a session becomes active. For example, in the US session, the dollar volume fluctuates more strongly because of companies in the US trade foreign exchange with companies in other countries.
And so each time frame has different strategies and ways to make a trade. Choosing the best time frame depends on your preferences. Do you want to trade securely by analysis, trade with news, or do you want to trade short term?
![Choose a reasonable trading time on Olymp Trade, IQ Option, Binomo](https://traderrr.com/wp-content/uploads/2020/09/choose-best-time-frame-to-trade-fixed-time-trade-forex-1024x684.jpg)
Asian Trading Hours – Asian Session
The Asian Session started when Sydney markets opened at 21:00 GMT +0, as the Sydney market is the only one open at this time so the volume and price variation fluctuated slightly compared to other time frames.
Next to the Tokyo market is open at 22:00 GMT +0, the JPY volume and transaction fluctuations strongly. But actually the volume of this market is not high, just at an average level, the liquidity is also low, so it will not affect the currency pairs in the Americas and Europe. The most traded currency pairs during this time are AUD / JPY and USD / JPY
European Trading Time – European Session
07:00 GMT +0 is the time when the London market is open and also when Tokyo makes transactions in the last trades. So this is the time when a large number of traders trade. This led to big changes in market volume because the Tokyo daytime traders exited and European traders entered at the same time. All currency pairs are traded during the European session, so the volume of the major currency pairs are pretty large.
This time session is very suitable for trading because it ensures the liquidity of the market. Trading volume in the Japanese market is 6%, the US market volume is 17%, sum it up, they are not equal to the European trading volume of 38%.
Americas Trading Time – Americas Session
The US (New York) day session starts at 12:00 GMT +0. At this time, the London market is still open, and the Tokyo market is closed. The online US and European markets have higher volume and liquidity than the rest of the sessions.
At 17:00 GMT +0, the London market comes to end. The Americas session continued until Asian markets opened. Although only the New York market is active at this time, the volume is still higher than the Asian session. European traders exit the trade.
During this session, all currency pairs are active.
Conclusion
You now already know the advantages and disadvantages of those sessions. You should analyze where the corresponding time with your habit, your style, your currency pair.