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Major forex trading sessions from around the world -by Ecork

– Reviewed by James Stanley, November 24, 2021

There are three main forex trading sessions that it consists of 24 hour market: London session, American session and Asian session. all The main geographical market position can show quite unique characteristics and trends Could you Allow merchants To effectively implement strategies At what time.

Although the forex market is the most liquid of all the asset classes, there are periods when volatility is constant and others subside. Understanding the times of these different forex sessions can improve the reliability of your forex trading strategy.

In this article, we will explore each of these forex market sessions including their main characteristics – forex time zones and how they affect trading.

What are the main forex trading sessions?

Usually, the forex market is divided into three market sessions:

The forex market is seen to be very efficient/dynamic during these trading sessions as banks, major institutions and retail traders operate. Observing the exact times of each trading session will help forex traders develop their own trading strategies around this data.

session

The main market

TIME (GMT)

we

New York

13:00 – 22:00

Asia

Tokyo

00:00 – 09:00

European

London

08:00 – 17:00

Forex session times

Asian trading session

Tokyo is the first forex session to open, and many of the top participants are using the momentum of trading in Asia to develop their strategies and use them as a gauge of future market dynamics. Almost 6% of the world’s forex transactions are performed in the Asian trading session.

European trading session

London is the largest and most important forex trading session in the world, with a market share of approximately 34% of Daily forex trading volume. Most of the world’s major banks maintain their dealing desks in London due to their market share. The large number of participants in the London forex market and the high value of transactions make the London session more a variable From the other two forex sessions.

The onslaught of liquidity coming from London could significantly increase Average movement per hour of major currency pairs such as EUR / USD. The chart below shows this statistic based on the time of day – note the increase that occurs as the European trading session begins at 03:00 ET (08:00 GMT).

Forex trading session movement

Source: DailyFX Traits of successful traders Research (2010-2012)

US trading session

The second largest trading market, New York handles approximately 16% of the world’s forex transactions. Many transactions occur in New York during the US-European overlap, with transactions slowing as liquidity dries up and European traders exit the forex market.

note the green dot On the previous chart around 08:00 ET (13:00 GMT) when the US is online and when the market overlaps between Europe and the US, the average movement increases further until London is offline (indicated by red dot) near 12:00 ET (17:00 GMT).

What is the best time to trade?

DailyFX data over the past 10 years has shown, European currency pairs showed more success when trading from 19:00 to 11:00 GMT. As mentioned earlier, liquidity during this time is relatively low as the US session has little/no impact. This low liquidity allows for range bound trading strategies with greater use of Indications Like RSI.

Day traders who love ranges and meaning Buying at support and selling at resistance You should consider trading European currencies during the late American session until the Asian session (19:0007:00GMT).

Traders who love hack And trends should take into account trading when Europe is online when Europe moves offline (08:0017:00GMT). Second, Asian currency trading (Australian dollarsor New Zealand dollar) During the Asian session it may provide some breakouts as well as this is the active working day for those local currencies.

If you try to trade the breakouts of European currencies during the Asian session, you are likely to find it frustrating because those markets tend not to move much since that ‘free hours’ for those currencies.

For more ideas on forex trading sessions, read What is the best time of day to trade forex?

Support pages and guides to improve your forex trading experience

  • If you are just starting out on your trading journey, it is imperative that you understand the basics of forex trading in our free site New to the world of forex Trading guide.
  • We also offer a range of Trading guides To complement the development of your strategy and your knowledge of forex.
  • Our research team analyzed more than 30 million live deals to reveal them Traits of successful traders. Combine these traits to give yourself an edge in the markets.
  • Traders often look at the sentiment of retail clients when trading the popular forex markets. DailyFX provides this data based on IG customer feelings.

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