Best Time to Trade Forex : The End of The Week

Many trader try to find when is the best time to trade.
Do you have one?
In the first hour of the market open?
Which market?
Japan, wall street?
Many trader believe that the overlapping between European market and US market is a good time to trade every pairs. Why because there is a lot of trader around the world who joining the market. Lot of traders mean lot of money.

For me, who do not know what happen to whole market, it very difficult to trade around that time. As we know forex market is very volatile market.

To avoid this very volatile market, some traders came up with a solution. They said " The best time to trade is at The End of The Day".

i'll give you an example why these two approach is difficult to applied. I'll use Euro to explain it.

First, 4 hour time frame at EURUSD

The red box is EURUSD 4 hour price movement at April 1 2016. At the European open, the pair is rising up. When the US open the pair continue to climb, but it fail to maintain the price. Around this overlapping market, the pair is going down but at the end it rising again. I can't handle a such market like this. Perhaps some traders can.

Second, EURJPY daily price movement

Trade at the end of day? March 31 2016 the pair break the resistance, but the day after, April 1 2016 the bar engulf the previous bar. Volatile market.

To avoid getting eat by the market volatile, i suggest you to trade weekly time frame.

I'll use EURGBP as example

Inside the red box, is the EURGBP price movement start form March 28 to April 1 2016. The first day of the week the pair going down, but the last three bar give you a very different picture.

Below is weekly EURGBP chart. The last bar break the 200 MA (red dotted line). It trigger the buy signal

Then why weekly time frame is better than others time frame. WEEKLY TIME FRAME SUMMARIZE WHAT HAPPEN IN THE WHOLE WEEK. There is a lot event, you can't analyze such a lot of news, information. The weekly time frame do it for you, just by a SINGLE bar, you will get conclusion how the market response to that news and information.

Enjoy your trade.