Trading sessions: which one is right?

Yes, the Forex market is open 24 hours a day, but that doesn’t mean that levels of activity are constant. In fact, it depends a lot on which pair are you trading. Let’s go by parts:

First, it is important you clearly understand there are FOUR different sessions on a typical Forex trading day. These are Sydney, Tokyo, London and New York. And below you can check times:

  • Sydney - Opens at 21:00 GMT - Closes at 06:00 GMT
  • Tokyo - Opens at 23:00 GMT - Closes at 08:00 GMT
  • London - Opens at 08:00 GMT - Closes at 17:00 GMT
  • New York - Opens at 13:00 GMT - Closes at 22:00 GMT

Why is it important to understand which sessions offers more volatility? Simple. You can open long positions and make money when prices go up. You can open short positions and make some cash when prices move south. But there is no way to profit when things don’t move at all.

Once you selected the pairs you are most interested to trade, you have to understand in which session they move more actively and therefore, offer more trading opportunities for you.

For instance, if you want to trade GBPUSD, the London to New York sessions will be your best choice. On the contrary, if you want to give the AUDUSD a try, New York to Sydney hours could work better for you. Also, keep in mind that eventually you have to rest.

It is important the pairs you choose to trade will somehow be concentrated on a certain session, to avoid working all day long and well, to get some well-deserved rest.

Overlaps work best. If you are trying to get the most out of your positions, trading during overlaps could be amazingly profitable as you mix activity from two different areas. Any data published during overlaps have a more significant impact on quotes.


Source link   Presented by Fort Financial Services

Is gold the best safe-haven asset?

From the thousand articles you read this week about the market, gold has been mentioned over and over again as a safe-haven asset. And yes, despite...

Bitcoin: a real investment?

The fact that you made a couple of bucks buying and selling Bitcoin doesn't make it a true investment. At least not for Warren Buffett, one of the world...

Habits that reduce your Forex risks

There are plenty of blogs out there. Some good, some not. And there are thousands of publications talking about risk management. While many...


A word on treasury yields

The yield of the benchmark 10-year Treasury note reached 3 percent in the previous session, a level not seen since January 2014. Gary Pollack, head of fixed-income...

Trading synthetic currency pairs

A synthetic cross currency pair refers to an artificial combination of currencies usually not available in the market. If you are taking your first steps in the Forex market...

Easy ways to avoid scammers in Forex

The Forex market is not a scam. In fact, it is an amazing place to make money. Unfortunately, dirty scammers (which operate not only in the Forex market...


Start paying attention to position size

When it comes to risk management, everything counts. And defining the right size for your position plays a key role in the equation. Intuitively...

Trading journal: should you keep one?

There are so many Forex blogs out there. Sometimes I think too many actually. But some of them are pretty useful (like ours, of course) and a common...

How to 'trade the news' in forex?

I am sure you've heard of it. The term 'trade the news' refers to those guys who would rather read newspapers all day instead of sitting...

  


Share it on:   or