Let’s see if you have understood this lesson correctly by answering the questions below.Financial Markets Online is the No.1 Best Forex education course on Trustpilot with thousands of successful traders all over the world working with our professional team across the financial markets. And in the next lesson, we shall go more precisely into when exactly to trade the Forex market. We have completed this short tutorial in the New York session. Hence, if you’re a novice trader, it is a good idea to start off with the New York session. The volatility of the market during this session stands in between the London session and the Asian session. Therefore, all in all, the New York session is a session that can be profitable for all types of traders. So, a news trader can take advantage of them, although a novice trader should stay away from pairs affected by such events, as it requires abilities unrelated to technical analysis. Several news events come in during this session. However, it is recommended to concentrate more on the major and minor currency pairs. So, during this time, you can choose to trade any pair. The liquidity during the start of the session is excellent, as the London markets are open as well. Which pairs should you have on your watchlist Apart from momentum, it is possible for the markets to reverse its direction as the traders might look to square their positions off. Hence, it is not a good idea to trade on Friday afternoons. That is, during lunch hours, the market goes into a consolidation phase.Īnother interesting fact to consider is, the market loses its momentum on Friday afternoon as the weekend begins for the Asian and the European markets. So, news traders can keep a close watch on all the US Dollar pairs as the news typically moves the market drastically.ĭuring the market open, the liquidity of the market is excellent, but as the noon approaches, it begins to drop. And as a matter of fact, 85% of the news is related to the US Dollar. Hence, this is an ideal time to enter the market as the spreads are quite low during this phase of time.ĭuring the New York session, the economic news begins to drop. Since the world’s two largest markets are trading in the forex market, one can expect a high volume of orders flowing into the markets. That is, there is an overlap between the two sessions. The New York session opens at 8:00 AM EST, which is during the London session. Now, let us see the average pip movement for some of the extensively traded currencies in the market. London session > New York session > Tokyo session The London session tops the table, which is then followed by the New York session and, finally, the Tokyo session. The liquidity during this session is pretty high.Īs we have discussed the average pip movement in the Tokyo session and the London session, let us compare the pip movement by considering all the three sessions.
This session is also referred to as the North American session. Precisely, the New York session begins at 8:00 AM EST. When London’s session is halfway through its trading, the New York markets make an entry into the market. After the Asian and the London session, the big fishes enter into the market, i.e., the New York market.
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