FOREX TRADING SESSIONS
The forex market operates 24 hours from Monday to Friday and is divided into three trading sessions:
Tokyo Session (Asian)
London Session (European)
New York Session (American)
Each session has its own characteristics and its own time, in addition, at certain times the sessions overlap each other.
Let's take a closer look at the sessions.
Asian session.
This session is characterized by a small trading volume, compared to other sessions. At this time, there are few major players on the market, so the price may move sideways for a long time.
There are many other countries present during the Asian session, such as Russia, China, New Zealand, and Australia.
Due to such a large number of countries and different opening hours, it is considered that the Asian session lasts from 11 p.m. to 8 a.m. GMT.
This session is suitable for those who do not like sudden movements. The session is characterized by smooth and slow movement, without strong bursts and without unexpected jumps. With the right direction, your stop loss will rarely be affected by market noise.
European session.
The London session is the most important. Most of the financial world turns on at this time.
This trading session is considered the largest in terms of trade volume, accounting for 34% of trade.
In addition to London, other major markets participate in the European session – the markets of Germany and France, because of this, it is considered that the working time of the European session starts from 7 a.m. to 4 p.m. GMT.
Large trading volumes are due to the fact that three sessions intersect at this time: the Asian one, which will close soon, the American one, which is about to open, and the European one itself.
This session is suitable for people who are not afraid of big movements and huge volatility. At this time, the market is as active as possible, there are many opportunities to earn, but do not forget about the risks, strong price movements can deprive you of all the capital in an instant. At this time, there is a frequent knocking out of stop-losses of retail players, after which the price often accelerates in the opposite direction.
American session.
At this point in time, New York is included, with a market share of 16%, the second largest trading market.
The American and European sessions overlap each other, creating a large amount of liquidity. The US dollar and the Pound are the most traded currencies, occupying a huge part of all transactions on the market, because of this, volumes are increasing.
At this time, important economic news often comes out, which adds strength to currency movements.
New York opens at 1:00 pm and runs until 10:00 pm.
What time is considered the most active?
The most active moments in the market are the moments when two sessions overlap each other:
New York and London: from 1:00 pm to 5:00 pm
Sydney and Tokyo: from 12:00 am to 7:00 am
London and Tokyo: 8:00 am to 9:00 am
When two sessions overlap, it is profitable to trade the main currencies of these sessions.
For example, trading in EUR/USD, GBP/USD currency pairs will give good results when the European and American sessions intersect from 1:00 pm to 5:00 pm.
Conclusion
Markets can move very fast, making big jumps, knocking out your stop losses, on the other hand, there may be a market situation in which the market moves very slowly and if you don't know how to wait, you won't be able to earn in such situations. Choosing the right time that suits your style is an important component of a trader's work.
Tokyo Session (Asian)
London Session (European)
New York Session (American)
Each session has its own characteristics and its own time, in addition, at certain times the sessions overlap each other.
Let's take a closer look at the sessions.
Asian session.
This session is characterized by a small trading volume, compared to other sessions. At this time, there are few major players on the market, so the price may move sideways for a long time.
There are many other countries present during the Asian session, such as Russia, China, New Zealand, and Australia.
Due to such a large number of countries and different opening hours, it is considered that the Asian session lasts from 11 p.m. to 8 a.m. GMT.
This session is suitable for those who do not like sudden movements. The session is characterized by smooth and slow movement, without strong bursts and without unexpected jumps. With the right direction, your stop loss will rarely be affected by market noise.
European session.
The London session is the most important. Most of the financial world turns on at this time.
This trading session is considered the largest in terms of trade volume, accounting for 34% of trade.
In addition to London, other major markets participate in the European session – the markets of Germany and France, because of this, it is considered that the working time of the European session starts from 7 a.m. to 4 p.m. GMT.
Large trading volumes are due to the fact that three sessions intersect at this time: the Asian one, which will close soon, the American one, which is about to open, and the European one itself.
This session is suitable for people who are not afraid of big movements and huge volatility. At this time, the market is as active as possible, there are many opportunities to earn, but do not forget about the risks, strong price movements can deprive you of all the capital in an instant. At this time, there is a frequent knocking out of stop-losses of retail players, after which the price often accelerates in the opposite direction.
American session.
At this point in time, New York is included, with a market share of 16%, the second largest trading market.
The American and European sessions overlap each other, creating a large amount of liquidity. The US dollar and the Pound are the most traded currencies, occupying a huge part of all transactions on the market, because of this, volumes are increasing.
At this time, important economic news often comes out, which adds strength to currency movements.
New York opens at 1:00 pm and runs until 10:00 pm.
What time is considered the most active?
The most active moments in the market are the moments when two sessions overlap each other:
New York and London: from 1:00 pm to 5:00 pm
Sydney and Tokyo: from 12:00 am to 7:00 am
London and Tokyo: 8:00 am to 9:00 am
When two sessions overlap, it is profitable to trade the main currencies of these sessions.
For example, trading in EUR/USD, GBP/USD currency pairs will give good results when the European and American sessions intersect from 1:00 pm to 5:00 pm.
Conclusion
Markets can move very fast, making big jumps, knocking out your stop losses, on the other hand, there may be a market situation in which the market moves very slowly and if you don't know how to wait, you won't be able to earn in such situations. Choosing the right time that suits your style is an important component of a trader's work.
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