Forex scalping is one of the techniques mostly used by professional traders with advanced knowledge in trading. Besides, the quality of brokers chosen for the trades is influencing the profits and losses that are suffered by the trader. However, though the choice of brokers has significant influence the final outcome of the trade, but still it is not the only aspect or factor that influences a trader in successfully execute the trades. The best time for forex scalping is another factor that needs to be taken into account by the traders.
You must have known that currency trading is a daily basis trading system and since there are several time zones in all over the world the best time for scalping is showing an upside down pattern. In other words, though the center of time is using New York Time and others countries are adjusting the schedule with New York Time but still there are some patterns you should know.
Related : Best Forex Brokers for Scalping
The first thing you should do is setting your time so fit with the New York Time schedule to see the patterns. Seeing the marketing trend in each time classification is actually very interesting stuff to do because the patterns will be repeated everyday. So, let’s start with classifying the period of time and see the flow of the market and then find the factors or aspects that influence it.
The first time classification is from 7:00 up to 8:00 AM New York Time. In this period, the market flow tends to move really slowly, the reason is because most of traders from Europe prefer to sit back and reconsider their strategies before the American traders enter the market at 8:00 AM. This condition causes the market flow really choppy but very slow and it is the best time for scalping currency trade or a perfect time for scalpers to practice with their movement in seeing opportunities offered by the trend. They could hold the position a bit longer to see the possibility and there is always chance and enough time to liquidate their position or change their strategy when they found the position is unprofitable.
The next time classification is from 8:00 up to 10:00 AM New York Time. In this period, all important markets are all opened from United States, Europe, and Asia. The flow of the market is moving very rapidly and though the chance to make profit is increasing the risk to suffer the loss is also higher. However, it is the best time for forex scalping or there is no better period to build up the position as long as you know how to stay alert.
Period of time between 3:00 up to 7:00 PM is the phase when some banks are preparing to close. This time is the calmest period from the entire trading period in a day, especially when all American banks are already closed along with all banks from major countries. The chance to make profit is low as well as the risk and during this period is better for scalpers to avoid building up the position because the market flow is very choppy.