Forex Market is a 24 hours market available 5 days a week. Thus a trader can trade it anytime. But during the 24 hours of time, not all currency pairs stay active or in a good liquidity. Different currency pairs stay volatile during different forex trading sessions. The 24 hours of full-day covers almost 10+ different forex trading zones base with the geographical location. These zones are known as forex trading sessions. Forex trading sessions are basically stock exchange opening & closing time of different stock exchange globally. When the stock market opens all traders buy/sell shares, they do this transaction with money, i.e currencies. So that is the time when major currency trading is done. Thus high liquidity in the forex market for that specific currency.
For example, during the Sydney Stock Exchange market time, all the Australian traders would buy & sell shares, stocks, indices, commodities with Australian dollars. So during the Sydney Market hour, AUD currency will be highly volatile. A trader can trade AUDUSD, AUDCAD, AUDJPY during these time period. Same way during London Stock Exchange trading period, GBP(pound) stays most active. Below is the list of different forex trading sessions & most preferable currency pairs to trade.
Forex Session Name
Ideal Currency Pairs To Trade
|Asian Session||0:00 – 10:00 GMT||USDJPY, GBPJPY, EURJPY, USDCNY, EURCNY, GBPCNY|
|European Session||8:00 – 16:00 GMT||EURUSD, EURJPY, EURAUD, GBPUSD, GBPJPY, GBPAUD, GBPCHF, USDCHF, EURCHF, EURGBP, BTCEUR, BTCGBP|
|US Session||13:00 – 23:00 GMT||EURUSD, GBPUSD, USDCAD, USDCHF, GBPCAD, EURCAD, BTCUSD|
|Australian Session||22:00 – 7:00 GMT||AUDCAD, AUDJPY, GBPAUD, EURAUD, AUDUSD, AUDNZD|
Forex Sessional Overlap
As during the 24 hours of forex trading time, many different session opens & closes time to time. One session overlap with another session. Those overlapping trading sessions are most important trading sessions. At those timing, the market stays highly active. Most common trading session overlap is “London Session & US session overlap”. In this timing, you can trade all major currency pairs. This overlapping happens from 13:00 GMT to 16:00 GMT.
Another Overlapping is Asian Session & European Session Overlap. It occurs from 8:00 GMT to 10:00 GMT on each trading days. Notice this overlapping time are generally only for 2-3 hours. As usually if you do not get any time to trade the whole day, you can trade during this most volatile time. Smart Forex Traders pick up their trades during these timings.
Forex Sessional Gap
Same as the sessional overlap are also forex trading sessional gap. Those gaps are the slowest trading periods. Cause those are off time for traders to trade across the globe. Break time for all institutional traders. Thus less trading activity & low volume. Generally, most the traders do not take any trades during those timing. It occurs usually at 23:00 or at one hour before each trading session start time, which also a one hour before the previous trading session end time.
How To Trade with Forex Trading Sessions?
Based on our research, we have observed that most of the intraday tops & bottoms or highs or lows get formed during the start of the major forex sessions. You can read our article for more details. Mastering Trades with Forex Trading Sessions.
Forex Market Movement During Different Trading Sessions:
Here you will see the five major currency pairs market movement in pips (explained later) during different forex trading sessions.
New York Session
|AUDUSD||30 pips||55 pips||64 pips|
|EURUSD||20 pips||66 pips||25 pips|
|GBPUSD||26 pips||52 pips||50 pips|
|USDCAD||25 pips||56 pips||44 pips|
|USDJPY||75 pips||27 pips||76 pips|
* Based on Jan 2018 Records
New Release Data:
All major forex news data get released during these major trading sessions. For example, if there is any important news about US dollar. Then it will get released during the US Session. This is another reason for volatility push of a specific currency.
You can try our Forex Market Hour Calculator to know when is the correct time for trading. Our Forex Market hour calculator is auto adjusted with the local time.
Forex Market Hour Calculator