How to Find the Best Times to Trade Forex Based on Volatility
Forex markets aren’t equally volatile 24/5. Volatility spikes during high-liquidity overlaps. This creates bigger moves and better opportunities. Low-volatility periods often range—frustrating for trend traders. Finding the “best” times means matching your style to session volatility.
Throughout the trading session, volatility ebbs and flows and knowing when to trade and when to wait is key. In this session from the US futures trading session, we take a closer look at this aspect of trading through the prism of volatility.
Major Forex Sessions and Volatility Levels
The forex day divides into three main sessions (times in GMT, adjust for daylight saving):
- Asian Session (Tokyo: ~00:00-09:00 GMT)
- Low to moderate volatility.
- Focus: JPY pairs (USD/JPY, AUD/JPY). Commodity currencies (AUD, NZD) move on China/Australia data.
- Best for: Ranges or carry trades. Avoid if you need big swings.
- London Session (08:00-17:00 GMT)
- High volatility—liquidity surges at open.
- EUR, GBP pairs dominate. Overlap with Europe drives early momentum.
- Best for: Trend starts, breakouts. Volume price analysis (VPA) shines—high volume confirms moves.
- New York Session (13:00-22:00 GMT)
- Highest volatility during London/NY overlap (13:00-17:00 GMT).
- USD pairs explode. News (NFP, Fed) adds fuel.
- Best for: Momentum, news trading. Biggest ranges here.
The London-NY overlap (13:00-17:00 GMT) is widely considered the “golden hours”—peak volume, tightest spreads, strongest trends.
Tools to Measure and Find Volatile Times
- Average True Range (ATR): On MT5/NinjaTrader—higher ATR = more volatility. Check 14-period ATR on hourly/daily for session comparison.
- Quantum Volatility Indicator: Highlights expansion phases. Spikes show volatile periods.
- Currency Strength/Matrix: Ranks pairs—focus on extremes during overlaps for volatile movers.
- Economic Calendar: Volatility peaks around high-impact news (NFP, ECB, BoE).
Practical Strategy
- Trend Traders: London open or NY overlap for momentum.
- Scalpers: Overlap hours for fast swings.
- Range Traders: Asian session for tighter moves.
- VPA Confirmation: High volume during volatile sessions validates trades.
Use Quantum tools on MT5 or NinjaTrader for real-time insight. Track your pair’s historical volatility by session. Trade when volume supports movement—avoid quiet hours unless ranging.
The best times align volatility with your style. London-NY overlap delivers most action. Quantum indicators make finding it reliable.
By Anna Coulling