What's The Best Time to Trade Oil?
Timing is one thing that will ascertain your success in the crude oil market and that is why it is essential to find the best time to trade Oil the best time with regards to activity and volume of crude oil trades. This is what we call volatility, when the oil market is volatile it is more liquid.
When is the best time to trade Oil? The most prominent time is undoubtedly the US & the UK market sessions, accounting for more than half of the total Oil Trading transactions.
If it comes to major market sessions: London, New York & Tokyo take up 75% of market activities. And transactions volume is the heaviest when the major markets market sessions overlap, this is the best time to trade.
Oil Trading sessions overlaps are characterized by high liquidity and the probability of finding a profitable trade is very high. This is because the volume of transactions is decided by the number of markets that are open & the times during which they overlap with each other.
Best Time to Trade Oil Trading Based Upon Volume and Activity
The best time is when markets sessions overlap this is the time when markets are highly liquid because there are more participants, which means more volume and momentum to fuel oil trends and oil trend break outs. This also tends to be when economic data is released, providing the triggers for the movements in trading crude oil.
17:00 GMT
Thecrude oil market is the most active when the two largest trading centers in the world overlap. 80 percent of the total average usually occurs during U.S.A. & European hours. these percentages alone tells day traders that they can't sit in front of the computer screen all day: this time alone is enough to make a good profit, the best time - the U.S. & European overlap which is between 13:00 & 17:00 GMT.
9:00 GMT
The next best time to transaction Oil Trading is during the Tokyo & European Session overlap when both the Asian and European traders have the opportunity to respond to European economic data. The London open session is also volatile as European traders normally react to overnight developments.
These times when the sessions overlap is the time you have to target to make profits, it is the best time for transacting on the oil markets.
THE ABSOLUTE BEST TIME FOR Oil TRADING IS FROM 7:00 TO 17:00 GMT.
The best time for oil is 7:00 to 17:00 GMT, this is because the volatility is much higher and opportunities for making a profit are much more frequent with bigger moves, especially in these 10 hours. This is when you can make 50-80 pips Profit.
News Releases / Economic Data Releases23:50 GMT Japan Fundamentals07:45 GMT Europe Fundamentals13:30 GMT USA Economic Figures
During Summer Time these news release times are 1 hour earlier because of day light saving hour.
Best Days
Although the online oil market is open on all these 5 business days there are certain days which are considered as the best days and trading during these days will give you the best time.
If you want the best time & the best days to trade, then statistics shows that Tuesday, Wednesday and Thursday are the best days since the maximum number of oil trade transaction happen during these weekdays.
