What are the best times to trade FX and when should you execute your currency trading signals? In this article we will give you some advice on both these issues and dispel some of the myths of how often you should look at prices.

There has been a huge rise, in traders wanting to day trade or scalp, you hear lots of talk about how you have to be on top of price action and watch them all the time and this currency trading advice, normally comes from vendors selling junk trading programs. Fact is day trading worked before the age of the internet, when a select few, had the price before everyone else and could gain an edge but this edge has now gone and day trading is a lot of effort for no reward.

The best ways to trade currencies are - currency swing trading and Currency trend following and the best times to trade, we will look at below apply to both methods. First, we will look at the major international currency trading centres and then, give you some advice on selected times to trade and if you follow the advice below, you won't be watching prices often!

A 24 Hour Market Place – Major Trading Centres

So lets review the major and time zones where Forex is traded and start with smallest and slowest the Asian markets. The major centres here are in Australia, Singapore and Hong Kong but all of these markets combined, are a distant third to the major European and USA trading time zones.

The European session starts with Frankfurt at 2am EST time and then London follows shortly afterwards at 3am EST. time. There is heavier volume in this session which features lots of volatility and good liquidity and trading starts to wind down around 12pm EST.

The US market opens at 8am EST and then winds down around 4:30 pm  when US equity markets close. Volatility and liquidity usually Falls after the European session closes and picks up again a US equities start to trade. The time the market is quietest and volumes are lowest, is the few hours hours between the US close and Asian open.

Best Times to Trade FX

So is there a best time to trade FX? You will hear a lot of people telling you that there is but so long as your consistent in the times you trade over time, you will do just fine if your system is based on sound logic.

From a personal point of view, the two times I always check currency prices are – London open and US close and the time I like to execute my trading signals is at the US close. In fact before the retail Forex market was available traders like me, traded CME Futures and we used the close to do the majority of our trading, it was a very effective time to trade and I still do most of my trading at this time.

Beware of Tick Watching

Many traders like to stay glued to a quote screen all day but personally, I have better things to do and traders who do this are spending a lot of time and effort for nothing. If you watch prices too closely, you can see patterns and trends within the noise of the market and they are meaningless. If you are tempted to trade them, this can lead to losses,as you have traded for the sake of trading. By checking currency prices a couple of times a day, you stay more detached and can see the price action in a more objective fashion.

So when looking for the best times to trade, I would avoid the gap between the US and Asian markets and pick a time frame that fits in with your life style and you checking FX prices two to three times a day is sufficient for most traders.

If you want a free currency trading system which beats all the cheap Forex robots sold online you should consider the one enclosed which has been making professional traders,great gains for over a quarter of a century and you can use it too. Its a free trading system and all you need to know about it is enclosed in this article.

The system we are going to look at is from a true trading legend – Richard Donchian and since he developed it in the late nineteen seventies to trade commodities, traders have been making money with it ever since and it works on any trending market and because Forex markets trend so well, its an ideal tool to use in your Forex trading strategy for bigger currency profits

The 4 Week Rule is simple one rule system and the trading signal is generated in the following way:

Buy a currency when it breaks to a new 4 week high and hold the position until a new 4 week low is hit and liquidate the long and go short. After this is done, you keep taking positions as new 4 week highs and lows are hit and always keep an open position, in the currency pair your trading.