If you have gone through a couple of articles of parkingpips then you already know who, why, how to trade forex. All you need to know is when they trade forex. So today, I will cover forex trading sessions and forex market hours
Forex trading sessions
currency market consists of 3 different major trading sessions and 4 minor trading sessions
- New York
Are the major trading sessions in forex.
Although there are some minor active trading sessions like Singapore, Hong Kong, Frankfurt, and Auckland. The forex market is open twenty-four hours, you won’t be able to make money trading the whole trading day. The reason is activity and volatility. As the forex market gets volatile in some trading hours and gets choppy in others. So to succeed in the forex market, knowing details about forex sessions and “market hours” is essential and mandatory.
Placing a trade is not a challenging part of this business. Even a monkey can place a trade. But the fact is knowing when to trade. One can make a profit if the market moves up or if the market goes down. But it’s not possible to make money if the market stands still at some point. The choppy market is a significant factor people lose money in the currency exchange market.
Tokyo, London, and new work are the three primary financial centers of each region, so three-session names go after their name.
Forex trading sessions–Asian trading session
Tokyo session or Asian session is the first session of the week. Australia, New Zealand, China, Russia influence the Asian session. Japan is the third biggest forex hub & financial center. Thus yen is the third most traded currency globally, so Japan influences most Tokyo sessions. Almost 20% of all forex transactions are made through the Japanese currency yen.
As Japan’s economy is based on export and also China is a significant trade player, so Big Commercial export companies and central banks are the top participants during the Asian session.
If you are a scalper, then the Asian market would be perfect for making some pips. As there are no strong moves so you can take the benefits of the ranging mode of the market. 1 hour after opening the market, big data is released, so movements are seen then. But later, the market gets choppy again.
Which pair should you trade in Asian trade or the best pairs to trade during the Tokyo session?
Sometimes we reckon the Asian market as a choppy market. Trading this period of time is very dull sometimes. As the market during this period doesn’t move much, you need to wait for a long time to get pips.
In the Asian session, big news from Australia, New Zealand, Japan, Hong Kong, China was published, so if you are a news trader, then the Asian market could give you some ample trading opportunities.
You will see some sharp moves in yen pairs this time because of China and Japan’s big banks’ news.
nzd/usd, aud/usd are the most traded pair during this period as we notice strong moves in these pairs. Contrary, gbpusd,eurusd, and some other American and European currency have a little movement in this period.
Count Pips movement in the Asian session
Forex trading sessions–The London session
More than 40% of all the transactions took place here in London. Sometimes market participants recognize the London session as a European session. Don’t you wonder why? Besides London, some other trading centers open this time in Europe, such as Frankfurt, Geneva, Zurich, Luxembourg, Amsterdam, Edinburgh, Paris, etc.
In the London session or European trading session, we observe the spread remains tight. As this session is a volatile session and the market remains active in this session, the transaction cost is also low.
A typical dialogue is there among professional traders, which is “trend is your friend. ” So if you are a trend lover and wish to trade with the trend but not against the trend, then the London session will be the perfect one for you as most of the market trend forms in this period. Sometimes we see financial markets follow the footprints of the London session in new work sessions also. So if you want to trade with big boys or European traders, then stick to the London session.
Sometimes trends may reverse back at the end of the London session, so try to open position quickly when the London session opens, and if you make a handsome profit, then don’t wait. Rather, exit your trade with profit. As if the market reverses, then you may lose your profit.
Best currency pairs to trade London session
As this session is volatile and there is much volatility during this session, you may trade any pair during this session, but there are some best ones.
Gbpusd,gbpjpy,eurusd,eurjpy could be the best ones for you during this session.
If you don’t have any headache about cross minor and cross pairs spread, and your brokers have low spread in those pairs, then you could try gbpaud,euraud,gbpcad,gbpchf during this session.
Pips range of London sessions currency
Forex trading sessions–New York Session
New york! A city never sleeps. like London and Tokyo, new york is also one of the significant economic trade centers of the world
Nearly 25% of transactions among all trading forex transactions were made solely in New York during this trading session.
At the start of the new York session, the European session overlaps it, so volatility remains very high when the new York sessions open. Most of the economic and financial news was released at the starting of the New York session as 80% of all the transactions involve the dollar directly or indirectly, so when the US financial news data is released market has a high tendency to move powerfully.
Sometimes we observe as a retail trader or short-term trader that the volatility gets dried up in the afternoon of the new york session. When the overlaps of London and New York session ends, Europe closes shops, offices, and transactions get lower. Sometimes that time the market starts to get reversed.
For this very reason, we don’t see much volatility on the Friday afternoon of the New York session. As Asian sessions traders will win enders the next day, they get busy with their date and start to pass quality times with their friends and family members, so volatility gets lower. Sometimes successful traders tend to exit their trade and cash their money to enjoy themselves, so the market gets dry during Friday afternoon.
Which pairs should one trade during a new york session or best pairs to trade during new york session
If you ask which session is the most volatile session, then definitely the finger goes to the new york session. Why tons of liquidity is here? European and New York sessions overlapped each other this time.
For this very reason, any day trader can trade any pair during this session, but definitely, some best is there. Try to stick with major currency pairs like usdjpy,eurusd,usdcad if you wish to make a consistent profit from this market.
Pips range of new york session
What is the best time of the day to trade forex?
When more people are participating in the market, liquidity is higher then.
As we know, no movements in the market can not give you pips. And no pips mean no profit. So liquidity is essential here.
So how could you find when there is more liquidity in the market? The simplest way is to pick the overlaps sessions. During the overlaps between two sessions, nifty traders search for the opportunity to make the highest money.
London and new york overlaps sessions
We know from this content that London and New York sessions are the busiest ones, so if you get two sessions together, think about how much volatility you can get. Big boys and big banks trade this session. Big news from the United States of America came this time, and you can take advantage of this. Sometimes late news comes from the European zone at this overlapped time.
If you find any strong trend formed in the European session, it may continue during the US session. So after finding a strong trend and the footprints of European sessions, just analyze the market, read some fundamental news, and find riding on this trend would be an excellent investment, then just ride on it.
Forex market time
|Asian session — Tokyo||11 pm to 8 am|
|European session —- London||7 am to 4 pm|
|American session —— New york||Noon to 8 pm|
The final talk
As a forex trader, when you trade any currency pair, you must know whether low volatility or high volatility work with your trading activities. That’s why Forex trading sessions are crucial. As you know, trading style varies from man to man, so it is crucial. Secondly, a trader needs to choose the suitable pair best suits them. Thirdly he should consider which time is the best for him to trade. As you know, you can not trade a whole day long, so when will you trade is a crucial factor in trading. Finally, if you have a solid trading strategy and you understand proper forex market sessions, then your chance to beat the market gets high now.
Professional trader’s opinion about forex trading sessions
” Market is separated into three peak activity sessions”John Kicklighter
” Traders can benefit from knowing when the trading hours overlap “John Russell
” As one set of Traders finish for the day another set is always starting up”Mark Wilson
” Approximately 6% of the world’s FX transactions are enacted in the Asian trading session”Warren Venketas
Different strategies on different forex trading sessions
|Asian session||London and US session|
|Stochastic signals forex indicator for mt4 &mt5 : You will know how to generate an effective signal using the default stochastic indicator.||Ultimate Guide To Trade With Double Top And Double Bottom Pattern : Chart pattern lovers, specifically those who love to trade on double top and bottom, find this strategy interesting.|
|If You Don’t use color stochastic indicator Now, You’ll Hate Yourself Later : Here I discussed a stochastic color indicator and also shared it with my readers.||Make $50 a day trading forex: If you are a low-capital trader, then this strategy is for you. Although 50 dollars is guaranteed who trade high volume can even make 5000 in even a single session.|
|20 pips a day forex strategy for 2022 : We know RSi is a default indicator. And This strategy will show you how to trade Asian sessions using the default rsi indicator.||5 minute opening range breakout strategy for 2022 : In the London session, this is something holy grail for day scalpers.|
|2 doji candles in a row strategy for 2022 : If you are a Doji lover, then this strategy is for you. Remember, most of the Dojis form in the Asian session.||10 pips per day scalping strategy: Short-term traders and scalpers love this strategy.|
|Best 5 minute scalping strategy for 2022: This strategy is made up with the Bollinger bands theory. You can even trade on 5 minutes chart professionally following this strategy.|
|1 min macd scalping strategy for 2022 : Scalping strategy made up with MACD.|
|Best currency strength meter for 2022: A rock-solid strategy made up of a currency strength meter.|