Trading News

See all posts (71)
Mastering Trading Strategies: Diamond and Butterfly Patterns, FTMO Challenge, and Trading in the Zone Boost Your Trading Success with FTMO Challenge, Forex Funds Management, and Trading in the Zone Diamond Pattern, Butterfly Pattern, Bullish Harami and other technical analysis tools Experts Weigh In on Cryptocurrencies: Here’s What They Have to Say Comparing 401(k)s and IRAs: Which Is Right for You? Private Equity and Startup Investing Are We Experiencing the Dot-Com Bubble 2.0? Tumultuous Equities in 2022: Here’s What Experts Are Saying Market Uncertainty and the Current (Potentially) Recessionary Environment: Where Do We Head From Here? Cryptocurrency Investing Insights: The Importance of Diversification What is margin in Forex: Explaining the term in plain English Basic principles of a successful trading day Facebook's cryptocurrency project is on the brink of collapse Specifics of trading with the Keltner Channel indicator TOP recommendations for effective use of Parabolic SAR Bitcoin renews all-time high but prospects remain bleak Cryptocurrency, «Robinhood», SPAC: New investment hybrids of the Covid-19 era What is slippage in Forex and how to avoid it? What is the NFP in Forex (Non-Farm Payrolls)? BTC.TOP believes that bitcoin will reach $400,000 The best currency pairs to trade Most common mistakes in algorithmic trading Terms and conditions of employment with FTMO The coronavirus snaps an 11-year growth streak in financial markets Bitcoin may fall to $10,000, but it is too early to panic The founders of the Africrypt crypto exchange disappeared along with their users' bitcoins What is a Buy Limit order in Forex and how to use it? India may introduce a law banning cryptocurrency trading What is scalping in Forex: all the pros and cons Elon Musk's unexpected statement crashed the crypto market Who are market makers and market users? How to pass the FTMO Challenge? Japan has several reasons to issue a national cryptocurrency FTMO is the best Proprietary Trading company The Linear Regression indicator: advantages, characteristics, recommendations The FTMO Challenge: TOP 5 tips Huge electricity costs threaten the cryptocurrency industry Benefits of working for Proprietary Trading Having no trading plan is the biggest mistake of novice traders What is a sideways trend in Forex, and how to approach it? What is capital in Forex: the size and usage Successful traders always limit their losses The McClellan Oscillator: All a novice trader needs to know Top 10 tips for turning a loser into a successful trader Pros and cons of using TOP 3 volatility indicators Aspects of Forex trading at night Top 5 unforgivable intraday trading mistakes How to trade the Diamond formation About a margin in Forex in simple terms How to use the RSI indicator
Aspects of Forex trading at night
Aspects of Forex trading at night

The financial market is flat during the night. The reason is that most of the action takes place during the European and American sessions, while at night extremely low volatility is observed. Generally, the range of the movement of asset prices in the market does not exceed 30 to 50 pips. Despite this, some traders still use strategies for Forex trading at night, achieving incredible results.

Pros and cons of night trading

Experienced traders believe that the main drawback of night trading is the lack of much activity in the market, but those who prefer trading during the night claim that this is, in fact, the main advantage of their chosen strategy. The reason is that the market is less volatile at nighttime and it is much easier to predict the movement of currency pairs. Besides, the news is not published for several hours so no sharp price movements should be expected. As a result, technical indicators will show less “noise”. Of course, the amount of profit will be smaller than in the daytime, but the chance to reduce the risks attracts many investors.

You should remember that not all assets change at night, so it is worth choosing those that will show at least minimal price dynamics. Otherwise, a trader simply runs the risk of wasting time on fruitless trades.

The undeniable advantage of night trading is a reliable connection to trading servers since the network load is minimal during this time. This ensures lightning-fast order execution if there is enough liquidity.

Many novice traders use night trading to practice their behavioral model while minimizing the risks. This is a great opportunity to understand how their trading terminal works or check the efficiency of a particular strategy.

Night trading schedule. What should you know?

The actual “night” in Forex begins at about midnight Moscow time when the largest exchange markets in Russia and Europe close. A truly “dead” period can be called the time between midnight and 1 AM. In order not to waste time, it is better to spend the time studying the intricacies of the market and refining your strategy.

Then you can focus on the following events:

  1. Exactly at 1 AM Moscow time, the Japanese stock exchange opens, but this fact is important only for those who trade pairs with the Japanese yen. The reason is that opening the exchange does not have much impact on the overall situation in Forex since the lion's share of local traders trade during the opening hours of American and European exchanges.
  2. 3 AM Moscow time is considered the most important moment. At this time, the economic news is published, the announcement of which you can always find on economic calendars. Taking into account the news, a well-adjusted Forex behavioral strategy will allow you to make good money during night trading. The main thing is to clearly understand which assets a particular piece of news will have the greatest impact on.

Pay attention to the size of spreads at nighttime. Sometimes brokers increase them to incredible sizes, which makes night trading simply pointless, even if your strategy is flawless and you observe the market constantly.

How to trade at night?

The reality is that you can trade in the financial market in the night in several ways:

  1. Performing all operations manually, guided by the data of selected charts. In this case, the trader has to stay awake and is forced to constantly analyze the situation in the market to open a profitable trade or close a losing one right on time.
  2. Using semi-automatic trading methods, setting Stop Loss and Take Profit levels. In this case, the success of your trading depends on the chosen strategy.
  3. Using scalping at nighttime or giving preference to proven trading advisors. They unmistakably identify potentially profitable trades, do not get tired and devoid of emotion, using strategies from the best experts in the industry.

The most important thing to do before starting overnight trading is to make sure you are feeling good and your mind is clear enough to be able to make rational decisions.

Useful tips

If you work hard in the financial market during the daytime, you should not trade at night since the risk of fatigue increases several times. In any case, the most important thing is to monitor your emotional and physical state, and if you feel that you are losing control over the situation, it is better to stop trading in Forex, regardless of the time of day.

The most profitable currency pairs for night trading:

  1. USD/JPY
  2. CAD/JPY
  3. EUR/JPY
  4. AUD/USD

The main way of making money in Forex during the night is a level or channel strategy. The reality is that at this time each asset has an obvious price range, the boundaries of which act as support and resistance levels – horizontal (for a level system) and inclined (for trading within a channel).

Specialists do not recommend using a breakout strategy during night trading since the price of even the most active currency pairs is more likely to remain within the channel, and breakouts are possible only in the early morning when the number of participants increases.

A stop loss is best set outside the levels, while a take profit should not exceed ten pips.

Remember that volatility at nighttime decreases with each passing minute and the later a trade is opened the more closely you need to monitor it. If you notice that the price movement stops and the dynamics are minimal, do not waste time since further trading will not lead anywhere.

What about weekends?

After dealing with overnight trading, an obvious question comes to mind: what about weekends? Experienced traders say that the best way to quickly increase your capital is to trade at the opening of a Sunday night when you get opening quotes to study gaps. Trading starts exactly at 11 PM but some participants develop strategies for trading on Saturday and Sunday.

We are talking here about crypto trading. The virtual money market offers incredible opportunities, including the prolongation of trading hours. Crypto trading is available 24 hours a day, 7 days a week, daily throughout the year.

The most important thing to remember is that night trading, similar to trading on weekends, is suitable only for levelheaded market players who are not venturesome and know how to control their emotions.

Still have any questions,
Get in touch with our expert
Download Our App

Our mobile application delivers the best trading experience on the go.

Get the free app today and enjoy responsive automated forex trading on your mobile phone

Get it on Google Play Get it on App Store
Start Investing
With Algofxpro
This option is not available right now.