Success in the foreign exchange market depends on several factors. This includes choosing the right trading session. Your profits in Forex can increase significantly if you base your decision on several important factors.

Success in the foreign exchange market depends on several factors. This includes choosing the right trading session. Your profits in Forex can increase significantly if you base your decision on several important factors.

Major Trading Sessions

You can make money on the market almost at any time of the day as we wrote earlier. However, this requires the price to move in at least one direction. Although Forex is open around the clock, real profits can only be made when the market is most active.

There are 4 main trading sessions:

  1. Pasific or Sydney session
  2. Asian or Tokyo session
  3. European or London session
  4. North American or New York session

Selection by Volatility

The higher the fluctuations in the market, the more profit you will get. The highest activity in Forex is at the intersection of the European and American trading sessions.

Large players enter the game. That increases the liquidity level which has a few benefits:

  • The price moves smoothly without sharp jumps
  • Chance of requotes reduces
  • Possibility of slippage decreases

Selection by Currency Pair

It is obvious that the maximum volatility on a specific trading instrument is observed during the corresponding trading session:

  1. If you trade the majors, you should enter the market at the end of the London session and leave at the close of the New York session.
  2. Cross-course enthusiasts should focus on the European session. With the onset of the American session, volatility will decline.
  3. If you trade Asian currencies such as the Japanese yen or the Chinese yuan, then the Tokyo session is right for you.

Selection by News Availability

Those who prefer to hit the jackpot on the major news releases can trade during any trading session. Events from the USA, such as the publication of Nonfarm payrolls data, have the maximum impact on the market. However, suitable trades can be found in any trading session.

Create a news calendar for yourself and check it every day before opening charts. Try to include the events with the highest influence on currency prices.

You can base your choice of a trading session on one or more of these indicators. But the most popular and most profitable periods for trading are still the European and American sessions. (PR)