Forex is the largest financial market. The daily trading volume exceeds several trillion dollars. None of the existing stock exchanges can boast of such an indicator. To succeed in trading, you need to know a number of nuances. This article, written with the participation of experts from Forex broker Imperial Wealth International, will tell you when the market works and about other significant aspects.
Forex schedule
The global decentralized market operates 24/5 (from 8:00 p.m. Sunday to 11:00 p.m. Friday (UTC/GMT)). Exceptions - international, national holidays, because financial institutions are closed. Unofficially, it is possible to trade on Forex even on weekends, but low volumes of activity, make it difficult to find liquidity providers.
What is a trading session? Forex Imperial Wealth International tells us
The period of the day, during which trading floors, banks, companies, located in the same geographical area, begin to work actively in the foreign exchange market.
There are four main trading sessions (the name is determined by the financial center):
- sydney (pacific);
- London (European);
- Tokyo (Asian);
- New York (American).
When one market is scheduled to close, another one opens. At certain times, the activity of participants increases and it is necessary to keep an eye on it. Sessions last for 9 hours (the exception is the European one, which works for an hour less). They follow each other, partially overlapping. The center of Forex trading can be called London (good time zone).
What is the difference between trading sessions? Forex Imperial Wealth International can help you understand
It is possible to become a successful trader, but you need to know the nuances and regional peculiarities of the trading sessions. Despite the fact that they are all in different parts of the world, it is a single financial structure with no insignificant or minor points.
All sessions have characteristic differences in trading:
- volumes. European exchanges (50% of transactions) can boast about the scale of transactions during the day. Then follow American (30%), Pacific (10%) and Asian (10%) exchanges;
- currency activity. Different currency pairs can be active in a particular trading session.
This should be taken into account when building a strategy. Knowing the periods of liveness you can get the highest profits.
ExpertsForex Imperial Wealth International highlight two highs:
- the opening of trading in London and their coincidence with the end of the Tokyo session;
- closing the European one and overlaying it with the American one.
In the first case, traders are guided by the behavior of European players. In the second, they are guided by American players.
Experts of Forex Imperial Wealth International believe that the London session is the most important. The high level of volatility is kept for several hours, and trading with the Swiss franc and the British pound is gaining relevance.
The best time to trade. Forex Imperial Wealth International tells the story
The duration of the European session is 8 hours (from 8:00 a.m. to 4:00 p.m. GMT). It partially overlaps with the U.S. session. This is the period of active trades. It is during this time one can observe the highest volumes, as well as the maximum level of liquidity.
According to statistics, many players choose a quieter period (the beginning of the European session), because then the trend and swing trading strategies work well. They are built on the application of correction, allowing to open transactions at a more favorable price.
At the intersection of the London and the U.S., large institutional players most often trade. During this period of time, the trend sharply changes direction. Market makers at the expense of volumes of the exposed orders, "push" the price to places of accumulation of stop-orders that allows them to take money of private players.
Broker Imperial Wealth International tells you what you need to know about the European session:
- 6.00 - 12.00 GMT is the best time for beginners;
- EUR/USD, GBP/USD are the best currency pairs;
- ideal for active traders.
The "London explosion" strategy is a good one. It is based on the fact that the European exchange begins to work immediately after the Asian one, and their intersection leads to a surge in business activity. The essence of the strategy is to place pending orders in order to catch the price impulse.
The Pacific session has the lowest liquidity (4-5%). Its peculiarity is that the greatest activity is fixed in the first two hours. The most traded currency pair is EUR/USD. Among the strategies, channel trading on timeframes from H1 is suitable. It starts at 22.00 GMT.
How can traders apply the forex schedule to their strategies? Imperial Wealth International broker explains
You should not open trades in the first few hours after the weekend. During this period, large traders assess the news background and make forecasts for the new week, so at such times there can be chaotic movements in the value of assets.
According to the experts of broker Imperial Wealth International, the forex chart is suitable for studying the price movements of currency pairs. Players use different methods for this, including technical and fundamental analysis. It also helps to identify trading sessions, which gives the opportunity to choose the best strategy depending on the market situation.
Indicators of trading sessions. Forex Imperial Wealth International will tell you more
This is an effective analysis tool for determining trading activity during certain periods. Presented in the form of graphical elements on the price chart, indicating the beginning and end of a particular session. Some indicators also indicate trading volumes.
One example is i-Sessions. You can use it to track sharp jumps in the value of assets that occur at the intersection of sessions. It also allows you to determine the level of volatility of a particular period (the height of the rectangles, the nature of the trend, the dependence on GMT time).
The use of the tool enables traders to make informational decisions when they determine more profitable entry and exit points when studying the prices of currency pairs.
