The Best Forex Trading Zones

The Best Forex Trading Zones
May 13, 2021 Market Traders Institute

Jose Tormos is a Senior Market Analyst, Forex Trader and Presenter at Market Traders Institute, Inc. (MTI)

Today, I’m going to show you what Forex trading sessions are best for those traders who are a bit more active in the market and don’t want to wait on trades to fulfill. I’m also going to show you what trading sessions are best for those of you who prefer to act slower in the market and want to take time for those trades to fulfill.

I’ll show you two different trade sessions, their volatility and lack of volatility, to help you make a decision when you go live and trade these markets, which ultimately it’s going to be your decision on what type of trader you are. By showing you these examples, hopefully you can make that decision faster and get on track to make this one of your most profitable years ever.

Come join me in the market as I show you what this means. [View screen.]


To give you an example, this is the U.S. dollar/Japanese yen pair in a 15 minute time frame. What you’re looking at here is a nice trending environment with a lot of volatility in the market within an Active Zone.

The screen is showing the European session toward the beginning of the U.S. session. What you see is a beautiful downtrend movement. You can practice trend line breaks. [There are] all sorts of opportunities for traders in this example.

Right here is where the market begins to rally and retrace toward the upside, the end of the active zone for the day. Why is that? The reason is because the market is now transitioning into what is called the Dead Zone.

On the other side, we see the same currency pair but just a couple of hours later and check out the difference. The market is moving sideways. This is where traders begin to make mistakes. They begin to think that the market is going to climb, but it’s stuck in a range because of the dead zone.

[The pair is] moving slower with less activity happening. But for those of you who are looking to have proper equity management, having slower trade setup develop, then the dead zone is going to be a perfect place for you to trade. The dead zone allows you to properly set up your trades and get ready for the next active zone to take place to fulfill those movements.

Don’t be discouraged by the direction of the active zone or the speed of it compared to the dead zone. There are beautiful combinations of both zones in your trading but your personality will gravitate toward one or the other. When you see which one that is, it’s going to take you to that next level of trading. I promise you.

Just keep things easy to understand, easy to execute and easy to obey. At the end of the day, that’s really what it’s all about. Keeping things simple and fun.  Trading needs to be financially fulfilling and rewarding; otherwise why do it?

For more tips and strategies on successful Forex trading, visit MTI’s YouTube channel at www.youtube.com/c/Markettradersinstitute/videos

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