Trading Sessions.

Earlier in this website, we have known that the fx market is open 24 hours daily. This does not mean you can just wake up and push your button for a Buy or Sell. There is need to know when to trade the despite the fact that you can profit when the market is moving up and also when it is moving down.
We have learn what forex is all about, why you should trade and who trade the market. It is very significant to at the same time study when you should trade.
To simplify it, we have known the what, why and who. It’s time to take a look at when, right?

Note that you will have a very difficult time trying to make money when the market doesn't move at all or consolidating. This normally occurs and lives you in a state of confusion whether to enter or not to enter. This lesson will help to determine the best times of the day you are probably enjoy to trade.

Market Hours

The forex market hours can be broken up into 4 distinct trading sessions namely:
The Sydney Session,
The Tokyo Session,
The London Session and
The New York Session.
Below are tables of the open and close times for each session:

                     

From the table above, you can see that in between each session, there is a period of time where two sessions are open at the same time. Let us take a look at Session overlap table below to have a clearer understanding, we are going to use the GMT time in this respect.

Take a closer look at this table,
From 0700 to 0800 GMT, the Tokyo session and London session overlap, and from 1200 to1600 GMT, the London session and the New York session overlap.
In the “Spot” market, these are the busiest times during the trading day because more volumes are traded when two markets are open at the same time. This is the basic truth because during time overlap, more participants are in the game, which indicate that more money is transferring hands.

Now, it is also important to know how each currency pair move in each of the trading session, At least you should be able to decide which one to trade and when best to trade such currency pair. And this led the way to knowing the average pip movement of the major currency pairs during each trading session. 

From the table, the European session normally provides the most movement. I mean the London session. Could it be the proper time for you to trade and which currency pair do you prefer at such session?

It will be wiser to take a look at each of the trading session, as well as those periods when the sessions overlap. Get set for the next post sooner.

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