Forex trading is a lucrative venture that allows traders to make money by speculating on the price movements of various currency pairs. However, not all trading hours are created equal, and traders need to know the best markets to play at different times to maximize their profits. In this article, we will explore the best markets to play at 7 pm Pacific Standard Time (PST) in forex.
Firstly, it is important to note that forex trading is a decentralized market that operates 24 hours a day, five days a week. As a result, the market is split into different sessions that overlap at certain times, making some trading hours more volatile than others. The most active sessions are the European session, the US session, and the Asian session, and each session has its unique characteristics that affect the currency pairs traded.
At 7 pm PST, the US session is in full swing, and it is the most active session of the day. During this session, the US dollar (USD) is the most traded currency, and it is involved in more than 85% of all forex trades. The US session overlaps with the European session, which is the second most active session, and the two sessions account for more than 70% of all forex trades.
The US session is characterized by high volatility and liquidity, making it an ideal time for traders who prefer short-term trading strategies such as scalping and day trading. The high volatility creates ample opportunities for traders to enter and exit trades quickly, and the high liquidity ensures that traders can execute trades at their desired prices.
During the US session, traders should focus on currency pairs that involve the USD, such as the EUR/USD, GBP/USD, USD/JPY, and USD/CHF. These pairs are highly liquid and have tight spreads, making them ideal for short-term trading strategies. Moreover, the USD is a safe-haven currency and tends to strengthen during times of market uncertainty, providing traders with opportunities for profit.
Another market to consider at 7 pm PST is the Asian session, which is the least active session of the day. However, it is still an important session for traders who focus on trading the Japanese yen (JPY). During the Asian session, the JPY is the most traded currency, and it is involved in more than 20% of all forex trades.
The Asian session is characterized by low volatility and liquidity, making it an ideal time for traders who prefer long-term trading strategies such as swing trading and position trading. The low volatility allows traders to hold positions for extended periods without being exposed to significant price fluctuations, and the low liquidity ensures that traders can execute trades without affecting the market price.
During the Asian session, traders should focus on currency pairs that involve the JPY, such as the USD/JPY, EUR/JPY, and GBP/JPY. These pairs are relatively volatile and have wider spreads, making them ideal for long-term trading strategies. Moreover, the JPY is a safe-haven currency and tends to strengthen during times of market uncertainty, providing traders with opportunities for profit.
In conclusion, the best markets to play at 7 pm PST in forex are the US session and the Asian session. The US session is characterized by high volatility and liquidity, making it ideal for short-term trading strategies, while the Asian session is characterized by low volatility and liquidity, making it ideal for long-term trading strategies. Traders should focus on currency pairs that involve the USD and JPY, respectively, during these sessions to maximize their profits. As always, traders should exercise caution and proper risk management techniques to minimize their losses.
