If you've got some trading experience under your belt, you may have already noticed that market volatility is not consistent.
It is important to be aware of the level of volatility and how to use volatility protection settings. Knowing the optimal levels can make the difference between major profits and major losses. The weekday that scores highest in terms of volatility is Thursday, closely followed by Friday.
Take a look at the table below to see the daily pip range for major currency pairs. While pip range doesn't exactly measure volatility, it's an intuitive way to get a big picture of the market. This is just something you have to keep in mind, if you want to know the best days for Forex trading.
When you're using trading software, you can easily track volatility. All of the data is available to you and you don't have to search for it - especially if you're using a powerful trading platform like MT4 Supreme Edition. Since there isn't much economic activity on weekends, it's also unlikely that the market will adjust to new conditions.
Sunday night is the only time of the trading week, when gaps occur regularly for currency pairs. For traders who operate with big volume and long-term trades, a positive triple swap can generate profit. Generally, the first half of Friday sees a lot of trading action and provides good conditions for trading.
Keep in mind that volumes drop significantly in the second half of the day as the weekend approaches. Moreover, weekly trends can change direction as traders close their positions to avoid weekend risk.
All in all, Tuesday, Wednesday and Thursday are the best days for Forex trading due to higher volatility. Now that we have overviewed the intraweek market dynamics, let's see what happens throughout the year. August is the worst month to trade, since many institutional traders in Europe and North America are on vacation. The big market movers have to protect their portfolios and returns, so:.
If you still want to continue trading in the summer, you must prepare for periods of ups and downs. It usually happens immediately after Labor Day in the U. If you've decided to skip the summer trading season, be smart about how you return to the market.
The autumn boom reflects the majority of traders returning to the markets, after their summer holidays. Traders usually have a period of four-to-five consecutive months to make some cash, before the summer drought hits again. As a trader, you should always check up on these holidays and add them to your trading calendar.
And to avoid frustration from lack of market moves - don't trade during periods with low volatility. Best days of the week to trade Forex. Android App MT4 for your Android device. MT WebTrader Trade in your browser. MetaTrader 5 The next-gen. Forex and CFD trading may result in losses that exceed your deposits.
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