Not all sessions are equal in volume. As professional traders we will be focusing mainly on the London session and the New York session.
London session opens 8am – 5pm London time and the New York session 9.30am-4pm New York time. These are based on the stock market times, and this is the time when most professional traders are at their desks and are the most active.
These 2 sessions overlap, with the London session coming in first. This means that the second half has the most action because of trading activity from traders from both sessions. The Asian session on the other hand trade in a different way because most of the trading activity is due to cross border transactions and are hence driven more by demand rather than speculation. Hence price section is a lot different.
Any large moves that happen in Asian session will carry into the London session. London is the center of the universe at least where FX is concerned. This is due to the fact that London is one of the largest stock exchanges in the world and it overlaps with the New York session. The nature of this session is very heavily influenced by speculation. This means that trends tend to start and run during London session. At the end of the session a lot of these trends will start to reverse as a lot of the traders will start to book profits before going home
We will trade the New York session when there are major news releases. This is the time when all the US data is released. 80% of all trades involve USD in some way. Second half of US session tends to be quite quiet.
Just because it is the London session doesn’t mean u have to trade it. Hence we will be looking at how to identify times when it is better to not trade at all. The aim of the game is to make profits while conserving all the profits you have made.