Peculiarities Of Trading Sessions In Forex Market

When working on developing of your own trading strategy

, don't forget to take the volatility of the Forex market into your consideration. Forex in Singapore as well as other parts of the world is open 5 days a week, 24 hours a day, which allows any trader from any part of the word take part in the global Forex trading and not to miss any good opportunity to increase your capital. Every trader must understand and take into his account the timing of various trading sessions since the foreign exchange market at different times of a day may behave differently.

Each currency pair that is traded in Forex market has some volatility where it experiences the biggest movements and price changes. It usually takes place during the certain hours of a day when the country is active and many events happen. Usually every part of the world has biggest influence on its currency, so knowing the time of each trading session may give you a clue which currencies it is better to trade.

London (European) session is the largest forex market and is more volatile than any other sessions. During the London session about 30% of daily transactions are done on forex market. The average price change for all currency paris during the London session is about 80 pips. For example, thedaily range of currency pairs as GBP/CHF and GBP/JPY is about 140 pips. In addition to these pairs, the most traded pairs in Forex market at this time condisdered to be USD/CHF, GBP/USD, USD/CAD and EUR/USD. Understanding of volatility for each traded currency pair allows you to set levels of risk, stop-loss orders and take-profit more correctly.

It is a fact that after the London session is over, many large investors prefer to transfer their investments from the European currencies to the US dollar. As at that time the New York (USA) session starts that is the second largest turnover in the Forex market. Knowing the time of different sessions and their features, can become the basis for the development of the trading system. The New York session is open from 12.00 to 20.00 GMT. The highest volatility during the day is seen in the period from 12.00 till 14.00 when both European and American sessions are open.

After the USA session is over the Tokio session starts, which runs from 0.00 to 8.00 GMT. This session includes all Asia and such big financial centers as Singapore Forex trading and Hong Kong. The greatest attention during this time is paid to the currency pairs GBP/CHF and GBP/JPY at an average daily range of about 100 pips. Forex in Singapore is also focused on AUD, SGD and NZD currencies. Taking into the consideration the preference of different sessions to the specific currency pairs, you can build a trading strategy that takes into account time zones when the appearance of a trend is most likely. Using the time factor of trading sessions and some proven technical indictors is the key to creating a successful trading system.

Peculiarities Of Trading Sessions In Forex Market

By: Daniel Shaw

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