tokyo session
( Asia )
London session
( European )
new york session
( American )
Each session has their own characteristics and their own time, in addition, at certain times the sessions overlap each other.
Let’s take a closer look at sessions.
Asian session.
This session is characterized by a small trading volume, compared to other sessions. There are few major players in the market right now, so the price can 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 the large number of countries and different opening hours, the Asian session is considered to last from 11pm. until 8 a.m. GMT .
This session is suitable for those who do not like sudden movements. The session is characterized by a 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 is turned on right now.
This trading session is considered the largest in terms of trading volume, accounting for 34% of the trade.
In addition to London, other major markets are taking part in the European session – the German and French markets, for it the working hours of the European session are considered to start from 7 am to 4 pm GMT .
The large trading volumes are due to the fact that three sessions are crossing 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 moves and high volatility. At the moment, 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 capital in an instant. At this time, there is frequent removal of stop-losses from retail players, after which the price often accelerates in the opposite direction.
American session.
Right now, New York is included, with a 16% market share, the second largest commercial market.
The US and European sessions overlap, creating a large amount of liquidity. The US dollar and the pound are the most traded currencies, occupying a large part of all transactions in the market, due to this, the volumes are increasing.
Important economic news often breaks at this time, adding strength to currency movements.
New York opens at 1:00 p.m. m. And it works until 10:00 p.m. m.
What time is considered the busiest?
The most active times in the market are the times when two sessions overlap:
New York and London: from 1:00 p.m. to 5:00 p.m.
Sydney and Tokyo: from 12:00 a.m. to 7:00 a.m.
London and Tokyo: 8:00 a.m. to 5:00 p.m. M. To 9:00 a.m. m.
When two sessions overlap, it is profitable to trade the major currencies of these sessions.
For example, trading currency pairs EUR / USD , GBP / USD It will give good results when the European and American sessions cross from 1:00 pm to 5:00 pm.
Conclusion
Markets can move very fast, making big jumps, removing your stop loss, on the other hand, there may be a market situation where the market moves very slowly and if you don’t know how to wait, you won’t be. able to win in such situations. Choosing the right time that suits his style is an important component of a trader’s job.