Previously you have learned about forex, how to get profit in trading, in this article we will try to discuss forex market hours.
Why is studying forex market hours important?
Previously we understood that the forex market is open 24 hours 5 days a week.
For traders, of course, this is very profitable because they can trade at any time.
If he makes forex as part-time, he can set the trading schedule with the main work.
But you also need to understand that not all times are beneficial to traders in the forex market hours
When the trend is strong and the volume of trade increases, the opportunity for greater profits.
But how if the market conditions are flat, not moving, this is a forex market hours boring time for you to trade.
Indeed the forex market is divided into 4 market sessions that never sleep.
You also need to learn that not all sessions provide a large volume so that the market seems not to move.
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Forex Market hours
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There are days when activities are busy.
But there are also times and hours when trading is quiet even though it still includes the forex market opening hours.
The more crowded the forex market, the greater the opportunity for profit; while the quieter the market, the less chance of profit. So, insight into forex trading time and hours is extremely important for traders.
You can adjust your trading strategy with the character of each forex trading session. The goal is to get maximum results from each of your trades.
First of all, we must know that forex trading time is divided into several main sessions, namely: Sydney Sessions (Australia), Tokyo Sessions (Asia), London Sessions (Europe), New York Sessions (America).
As we know, there is a quite long time difference between Australia and America (around 16 hours).
This is what makes the forex trading market never sleep. When markets in one country are closed, other markets are open, and so on.
March / April – October / November in Spring / Summer
- Sydney Open – 7:00 a.m – Closed – 4:00 p.m local time. 5:00 p.m. – 2:00 a.m EDT, 10:00 p.m. – 7:00 a.m GMT+1
- Tokyo Open – 9:00 a.m- closed – 6:00 p.m. local time, 8:00 p.m – 5:00 a.m. EDT, 1:00 a.m – 10:00 a.m GMT+1
- London Open – 8:00 a.m – closed – 4:00 p.m. local time, 3 a.m – 11:00 a.m EDT, 8:00 a.m. – 4:00 p.m GMT+1
- New York Open – 8:00 a.m – Closed – 5:00 p.m.Local time, 8:00 a.m. – 5:00 p.m EDT, 1:00 p.m. – 10:00 p.m. GMT+1
October/November – March/April at Fall/Winter
- Sydney Open 7:00 AM – Close – 4:00 PM local time, 3:00 PM – 12:00 AM EST, 8:00 PM – 5:00 AM GMT.
- Tokyo Open – 9:00 AM – Close – 6:00 PM local time, 7:00 PM – 4:00 AM EST, 12:00 AM – 9:00 AM GMT.
- London Open – 8:00 AM – Close – 4:00 PM local time, 3:00 AM – 11:00 AM EST, 8:00 AM – 4:00 PM GMT
- New York Open – 8:00 AM – Close – 5:00 PM local time, 8:00 AM – 5:00 PM EST, 1:00 PM – 10:00 PM GMT.
The forex trading hours guide can be used as a reference.
Except when the United States and several other countries impose Daylight Saving Time (DST).
When DST, forex trading hours can be shifted forward 1 hour, as well as the schedule of important events in the economic calendar.
DST takes effect between March-November with different dates each year.
When DST will start and end usually Brokers make announcements
The actual opening and closing of a session depend on local time hours, which range from 7-9 AM.
But if we pay attention, there are actually two sessions that have the same working hours, even though only two hours.
For example in summer, from 3: 00-4: 00 AM ET, where the Tokyo session and London session overlap.
And also in summer and winter from 8:00 AM-12: 00 PM ET, where the London session and the New York session overlap.
With two sessions operating at the same time.
It allows higher trading volume because the demand for currency transactions will increase and the ease of moving from one hand to the other.
Of course, you will be bored when the market is not moving, aka flat.
Average price movement during the session market
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Studying the average major movement pair in each session will at least provide a reference for you in choosing market sessions that provide the highest chance to catch profit in forex trading.
Below the data obtained for the average movement of major pairs in each session.
- EUR/USD at Tokyo session has 76 pips average movement, London session with 114 pips and Newyork session has 92 pips.
- GBP/USD at Tokyo session has 92 pips average movement, London session with127 pips and Newyork session has 99 pips.
- USD/JPY at Tokyo session has 51 pips average movement, London session with 66 pips and Newyork session has 59 pips.
- AUD/USD at Tokyo session has 77 pips average movement, London session with 83 pips and Newyork session has 81 pips.
- NZD/USD at Tokyo session has 62 pips average movement, London session with 72 pips and Newyork session has 70 pips.
- USD/CAD at Tokyo session has 57 pips average movement, London session with 96 pips and Newyork session has 96 pips.
- USD/CHF at Tokyo session has 67 pips average movement, London session with 102 pips and Newyork session has 83 pips.
- EUR/JPY at Tokyo session has 102 pips average movement, London session with 109 pips and Newyork session has 107 pips.
- GBP/JPY at Tokyo session has 118 pips average movement, London session with 151 pips and Newyork session has 132 pips.
- AUD/JPY at Tokyo session has 98 pips average movement, London session with 107 pips and Newyork session has 103 pips.
- EUR/GBP at Tokyo session has 78 pips average movement, London session with 61 pips and Newyork session has 47 pips.
- EUR/CHF at Tokyo session has 79 pips average movement, London session with 109 pips and Newyork session has 84 pips.
If you pay attention to the data above, the London session provides a higher average movement than the other sessions.
So we make the conclusion that the London session is the busiest session.
This gives traders the opportunity to more easily catch profits.
You will also need to pay attention which pair with average movement is higher than the other pair.
With the high moving average of the profit, an opportunity will be more effective.
Currency pairs to trade in Tokyo session
At the Tokyo session, which pair is the best to trade?
We will try to provide data related to the pair and the average movement in the Tokyo session.
Tokyo session is also called to as the Asian session.
Called the Tokyo session because this city is the financial capital of Asia.
You need to know that Japan is the third-largest forex trading center in the world.
Japanese Yen is the third most traded currency on average, took part in 16.50% of all foreign exchange transactions.
In the Tokyo session, an average of 21% transactions occurred in this session.
Average movement pair in the Asian session
- EUR/USD average movement is 56 pips.
- GBP/USD average movement is 54 pips.
- USD/JPY average movement is 30 pips.
- AUD/USD average movement is 65 pips.
- NZD/USD average movement is 58 pips.
- USD/CAD average movement is 39 pips.
- USD/CHF average movement is 40 pips.
- EUR/JPY average movement is 57 pips.
- GBP/JPY average movement is 72 pips.
- AUD/JPY average movement is 65 pips.
- EUR/GBP average movement is 23 pips.
All data above are from past moving averages, and future conditions may also change depending on liquidity and transaction volume.
But you can take that data into consideration which pair you chose in this Asian session.
Characteristics of the Asian Session
- Action is not only limited to Japanese exchanges even though this country is the most advanced in the Asian region. Tons of transactions also take place in Hong Kong, Singapore, and Australia.
- The main players in the Asian market are commercial companies and central banks. Because the Japanese economy is very dependent on the value of exports and imports. With China also as the main actor in this region.
- Liquidity in this session can be very thin, sometimes it can even be said in this session rarely occurs high market turmoil.
- In this Asian session, the currencies that are quite strong are AUD/USD, NZD/USD.GBP/JPY
- In the Asian session usually market participants will still be waiting for news releases that will appear when European markets open, so in this Asian session trading volume will usually be smaller compared to other market sessions.
- The Asian market is known as a consolidation session especially if there has been a very volatile turmoil during the previous New York session.
- In this session in addition to economic data from Japan, news from China is also a part that is often awaited by market participants, because China is a new force in Asia where the country’s economic data is very influential on other countries such as Australia, because most of Australia’s exports are to China, so that news from one country may affect other countries.
What the best pair to trade in Tokyo session?
Currencies that may be of interest to you in this Asian session are JPY and AUD.
In this case, it should be noted that news that impacts not only those issued by Japan and Australia.
Given that China has grown into a new economic power when they release important news, the movements of the two currencies will also be affected.
Currency pairs to trade in London session
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The European session is also referred to as the London session, this is because about 31% of the trade is conducted in London, while the remaining 5% is in Germany.
The European market is the most crowded forex trading hours and hours when thousands of large world-class entrepreneurs make transactions with one another.
Europe, especially London, has been the center of world finance since the Industrial Revolution era.
The European market takes the largest portion, which is around 36% of total trading on the global forex market.
Average movement pair in London session
- EUR/USD average movement is 83 pips.
- GBP/USD average movement is 82 pips.
- USD/JPY average movement is 36 pips.
- AUD/USD average movement is 60 pips.
- NZD/USD average movement is 64 pips.
- USD/CAD average movement is 66 pips.
- USD/CHF average movement is 58 pips.
- EUR/JPY average movement is 80 pips.
- GBP/JPY average movement is 102 pips.
- AUD/JPY average movement is 86 pips.
- EUR/GBP average movement is 40 pips.
The data above is the moving average of the main pair of data from the past, in future price movements may change depending on liquidity and transaction volume.
But by using this data at least you have a reference to which pair gets the highest moving average, so you will make a choice based on the best pair.
Characteristic of the London Session
- London session is when forex trading is very busy, resulting in very high liquidity and lower spreads.
- The range of price movements becomes very volatile, sometimes the trend that occurs in the European session will continue until the beginning of the New York session.
- When European daylight hours, volatility often decreases during lunch breaks and waits for the American session to open.
- Important news in the Eurozone can greatly influence price movements.
- At the time of the European session, all currency pairs became very tempting to trade because of the hectic forex market.
- However, the most profitable movements in the major pair are EUR / USD, GBP / USD, USD / JPY, and USD / CHF. Some cross pairs such as EUR / JPY and GBP / JPY can also be chosen because the movement is quite wide.
What the best pair to trade in London session?
Due to very busy trading, almost all pairs can be traded, but by choosing major pairs such as EUR/USD, GBP/USD, USD/CHF, generally, this pair has a tight spread.
But of course you can choose cross pairs with high moving averages such as GBP/JPY, and EUR/JPY, even with wider spreads.
In the cross pair because the movement is very volatile, maybe you should be vigilant because rising prices fall can take place very quickly, less suitable for scalping.
Currency pairs to trade in New York session
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The city that never sleeps, this nickname for the city of New York, you may have heard the song Alicia Keys The concrete jungle where dreams are made of.
Describes how busy the city is and where many people want to reach their dreams.
New York is not only the center of American finance but the world’s financial center.
So it’s not surprising that the American session centered in New York alone can cover around 19% of total global forex trading
Plus the US Dollar is currently considered a world currency. About 90% of global trade in goods and services uses the US Dollar as a medium of payment.
So the American trading session is also an important moment for forex traders.
Average movement pair in New York session
- EUR/USD average movement is 77 pips.
- GBP/USD average movement is 68 pips.
- USD/JPY average movement is 34 pips.
- AUD/USD average movement is 68 pips.
- NZD/USD average movement is 62 pips.
- USD/CAD average movement is 67 pips.
- USD/CHF average movement is 56 pips.
- EUR/JPY average movement is 72 pips.
- GBP/JPY average movement is 77 pips.
- AUD/JPY average movement is 71 pips.
- EUR/GBP average movement is 36 pips.
The data above is past data, this is not an absolute calculation on future movements.
Data on price movements may change depending on transaction volume and liquidity in the New York trading session.
Characteristic of the New York Session
- Market liquidity tends to be high during the morning of New York time because it overlaps with the European session.
- Important US economic news released, will drive prices on the market, and 90% of trade involves the dollar.
- After European markets close, liquidity and volatility will decrease, coinciding with the afternoon trading session in America.
- On Friday afternoon New York time, the trading crowd will decrease dramatically, because Asian and European traders have stopped to trade, preparing for the holiday weekend.
- Events reversal of the trend may often occur in a period of time after the American afternoon session, so traders need to be careful.
- Some traders does not want to leave open positions at the end of trading on Friday to avoid things or news that might occur at the weekend.
- All currency pairs are very attractive for trading in the American session. However, you must be careful when important news will be and is being released. The US dollar can move wildly and even jump around.
What the best pair to trade in New York session?
You can choose major pairs in general, but because USD is the dominant currency, you can choose GBP/USD or EUR/USD with tight spreads.
But all pairs are basically good because this New York session is also very interesting with high price movements.
However, you should also pay attention to the news that will be released in this New York session, because the impact can make prices move like shaken, up and down quickly.
Studying the liquidity trends that occur in each market session provides information that becomes a trading reference.
The goal is to find out which sessions provide opportunities for profit, and what pairs are worth trading based on that market session.
Indeed you can choose many pairs, but focusing on one pair will actually make it easier to implement your strategy.
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