Forex trading is a 24-hour process, you know. However, most traders simply don't have the opportunity to constantly track the fluctuations of currency pairs. That's why the number-one task for any trader is to define the best time for trading.
The best trading time
In essence, a trading range of any currency pair depends on the world's macroeconomic and political situation, and liquidity. So, we can make the following conclusion: the first thing we need to define is the time periods when the range of currency fluctuations is the largest and the smallest. Once these time periods have been defined, we can adjust better our trading systems to the time period we need.
Division into trading periods
How can we divide our time into necessary trading periods? It's not as difficult as it may seem. The task can be easily sorted out with the help of the Economic calendar tool provided by the LiteForex broker.
Let's have a closer look at the Economic calendar.
The calendar is updated in a real-time mode and offers all macroeconomic and political information necessary to the trading systems based on fundamental analysis.
At first, let's filter the Economic Calendar according to the currency pair we need: click on the "Filter" button and select the countries whose currencies compose the currency pair. For example, if we are interested in GPB/USD, we need to select Great Britain and the USA.
Now that the Economic calendar is filtered, we can see news related only to the GPB/USD currency pair.
Then we need to filter the news feed according to the importance of news. The degree of importance is proportianal to the number of circles in the "Priority" graph (1 to 3).
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.