Living in Southeast Asia and have a day job? This trading session is for you! While you have settled down at home, traders in USA are only starting their day.
#1 US Session Trading Hours
When the traders in Europe return from their lunch, the traders in America (mainly in New York) start their trading day. This is at 12pm GMT.
Due to its leadership in world trade & global economic policies, the US session is one major financial center that markets pay keen attention to.
#2 Reasons
Reason 1: Extremely high liquidity given that the European session is the most active Forex market in the world.
Reason 2: Around 85% of all Forex transactions involve the USD
Reason 3: Most economic reports are announced near the start of the US session at about 12pm GMT. As the US has a large influence on the world, volatility will be high at the start, providing traders with opportunities to make a quick profit.
#3 Characteristics
Past 3pm GMT (once the European session ends), the Forex market goes to sleep. Liquidity and volatility tend to drop, resulting in slow price movement and the possibility of prices being range bound.
This phenomenon is particularly felt on Friday’s afternoon sessions where traders across the globe shift their focus to non-trading related activities.
So, go out with your friends or spend time on your hobbies on Fridays, the eve of major public holidays (in Europe and the US), and on the holidays!
#4 Average Pip Movement
The table below shows the average pip movement for the New York session.
Please note that this table is not all-inclusive and the range may differ from time to time depending on various conditions such as news and specific economic trading activity.
#5 Which Pairs Should You Trade?
You guessed it! You should focus on the pairs with a larger range and trade those.
Again, expect a volatile shakeup due to incoming reports.
Conclusion
You have learnt that there are opportune moments to trade Forex. You know when to trade and what to expect, saving you from potential heartaches and frustrations.
You also know which days to stay away from trading; to go out and have some fun instead. After all, life is meant to be enjoyed too.
Here’s What You Can Do To Improve Your Trading Right Now:
#1 Join us in our Facebook Group and share your questions as we learn and grow.
#2 Never miss another market update; get it delivered to you via Telegram.
#3 Grab a front row seat and discover how you can expand your trading arsenal in our FREE courses (for a limited time only).
See you around!
