Forex Trading Times
New York opens 8:00 AM to 5:00 PM EST
Tokyo opens 7:00 PM to 4:00 AM EST
Sydney opens 5:00 PM to 2:00 AM EST
London opens 3:00 AM to 12:00 noon EST
The 14 Well Known Trading Time Zones - eMini Futures
1. The open… 9:30 – 9:50 EST a red zone. The first 20 or 30 minutes can be very profitable, and is the most dangerous time for the novice speculator. Volatility creates the largest profits and also increases your risk substantially. It takes about 20 minutes for the market to settle down. Please note there is no time zone that is risk free. Pay close attention to any news or Fed reports before and after the open. You would do well not to trade during this time period…unless you practice, practice, practice. The red zone does not mean down or up…it means be extra careful. It is best to avoid trading at all on FOMC announcement days.
2. Ten o’clock reverse… 9:50 – 10:10 EST a yellow zone. Ten o’clock is one of those times you must be on your toes. The S&P often reverses or pulls back during this time period. Look for gaps to get filled during this reversal time period. This is one of the more profitable times of the day. If the market remains stable during this period it usually remains stable until the next yellow zone. Learn its personality well! Look for a double top or bottom to start the pullback or reverse. The yellow zone does not mean up or down…it’s a time when the market takes a breather, pulls back, or reverses.
3. Now’s the time… 10:10 – 10:25 EST a green zone. This is the time to really focus on what the market is trying to tell you. This can be one of the safest times to trade; coming off of a 22 pullback or a reverse or maybe just continuing in the same direction. Keep your eye on the Dow and Nasdaq here. Look for the market to move in the opposite direction of the open. The green zone is a little more predictable and if prices move higher at the open it often reverses during ten o’clock and continues down during this time period. This presents a low-risk trade to the up side…go with the flow, and wait for the turn. The green zone does not mean up or down; just one of the safest time frames to trade.
4. It’s about time… 10:25 – 10:30 EST a yellow zone. It may pause here or flat out reverse again. We will be ready, and we can anticipate this if we are in a trade and use a tight trailing stop. Once again we focus on what the market wants to do here. If you are just starting out, this is the time period you should study. The market has gone through most of the volatility of the day, and now it should form a steady trend till 11:15 – 11:30, and just may continue without any fan fair till 12:00. The yellow zone is time for the market to stall, pullback, or reverse.
5. Time and time again… 10:30 – 11:15 EST a green zone. As mentioned above this could now trend till 12:00. This period is a safer time to make simple strategies work. If it did reverse at 10:30 it may continue in the same direction as time period 3. Please note that after 11:15 it is considered to have entered the doldrums, so take caution if you are in a trade during the last 15-minutes which is a red zone. Remember the green zone does not mean up or down; just one of the safest time frames to trade.
6. Time out… 11:15 – 2:15 EST a red zone. The midday doldrums. As you approach twelve o’clock if the trend was moving down it may just move up and vice versa. Many experienced traders call this the 12 o’clock hop…or flop. It’s lunch hour for most traders on the floor, volume falls off, and it may form a channel or just move sideways during this time period. Inconsistent follow through; the locals scalp the market and eat you for lunch. You would do well not to trade during the doldrums. Only the most experienced should venture a trade here. Pay attention to the next time period because it lies in the red zone. Remember the red zone does not mean up or down…it means be extra careful. Especially during the doldrums…most losses occur here.
7. Time on my hands… 1:25 – 1:35 EST a yellow zone. This is just one of those times that, over and over again, tries to move to the lowest price in the afternoon. It’s not a usually long time period as you can see, and most experienced traders refrain from trading during this time period. Look out for breakouts to the downside. You can be proficient with lots of practice, and due diligence. The yellow zone is time for the market to stall, pullback, or reverse. Also remember it’s in the middle of the red zone…danger, danger, danger!
8. Times flying by… 2:15 – 3:00 EST a green zone. Now that we have the doldrums out of the way we can get back to business. Trends are established; technical analysis can now be put back to work…more action because after 2:00 p.m. the bond traders start to drift in to the market, and after 3 o’clock the Chicago Bond market closes; look out here they come, looking for action. Look for frequent breakouts in both directions, and keep a keen eye on the next time period. Remember the green zone does not mean up or down; just one of the safest time frames to trade.
9. Time to catch the train… 3:00 – 3:10 EST a yellow zone. After the bond market closes, they move the market…look for a reversal or spikes. It’s not uncommon to have news or reports around this time. If it does reverse here, look for the turn, and try to catch the train going north or south; it could be significant, but use caution, be on your toes here. If you don’t buy the ticket you can’t catch the train. Remember the yellow zone is time for the market to stall, pullback, or reverse.
10. Time, and time again … 3:10 – 3:25 EST a green zone. The market starts to calm down between two significant reversal time periods…give it your best shot. If the trend is up, trade with the trend and vice versa. Use a safe strategy not a power trade. Remember the green zone does not mean up or down; just one of the safest time frames to trade.
11. Take your time… 3:25 – 3:30 EST a yellow zone. There’s a good chance it might reverse here, just like the number 9 time period. Best to let it stall, pullback, or reverse and look for the next opportunity. Well, maybe a small breakout strategy might work for a point or so. Like any yellow time zone, it’s a time for the market to stall, pullback, or reverse.
12. Times running out… 3:30 – 3:40 EST a green zone. Not much going on here most days; anticipate the last reversal of the day (3:45 – 4:00). Take the time to set up this strategy; look at support and resistance…just what are the possibilities here. The day is almost over, and if you are running out of time to make a trade, try not to panic, take what the market gives you. Remember the green zone does not mean up or down, just more consistent technical analysis.
13. Time to settle down… 3:40 – 3:45 EST a yellow zone. It’s time for that last reverse…Brokers, speculators, market makers, and specialists are settling trades for the day. It moves the market in funny ways; you just go with the flow. If you see what the market is trying to do, look for the strategy to take advantage of it. Remember the yellow zone is time for the market to stall, pullback, or reverse.
14. Where did the time go… 3:45 – 4:00 EST a green zone. This time period reminds me of the 12 o’clock hop or flop. If the market was moving down in the afternoon session, you can look for a hop; mainly caused by speculators covering their short positions, and vice versa if the market was moving to the up side. Don’t try to stay in the market in the last few minutes…we don’t want to get caught in having our trade move to an overnight position; you may get a margin call. Remember the green zone does not mean up or down.
Adapted from Marshall Jones (RIP), Simple as 1-2-3