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LESSON: Best Time to Enter

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]We don’t want to be entering breakout trades at all hours of the day and night.

Certain times of the trading session are far better to enter than others. The most important thing for breakout trades is volatility as this greatly increases the chance of a breakout occurring and being a success.

When trading the intraday charts it is even more important as to what time the breakout occurs. We don’t want to be entering into a breakout trade when there is little volatility and the market is moving sideways.

The best time to make a breakout trade is:

• UK session
• US Session

During the UK and US session the market experiences the most volatility. It is during this period that price will tend to move and the time when breakouts are far more likely.

We especially do not want to be entering into a breakout during the Asian session when the market is not doing too much and the volatility is low. If we were to enter into a breakout trade during this period we would risk being entered into a trade that could be a false breakout. The other thing that concerns me about this is the breakout would occur without the big players in the UK and US taking part. They may decide a different direction for the market when they enter, and your breakout could very quickly turn into a fake out!

The graph below shows the makeup of the Forex market hours. During the period of 4hrs when the UK and US sessions overlap is the time of most volatility. Trading during this time increases the chances of a breakout and the biggest moves will normally happen during this overlap period.

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