One of the advantages of trading in the forex market compared to other markets is a market that is open for 24 hours every day. This makes investors and traders around the world able to trade in working hours, after work, in the morning, or even in the middle of the night. However, not every time in 24 hours can we say as the optimal time. There are times when the market looks very volatile, there are times when the market moves only slightly, and there are times when the market is really in a condition that gives us the greatest opportunity to make a profit. Moreover, each pair has its own "working hours" due to the time difference between countries one and another.
Trading session in Forex
There are limited times where you can focus on trading. The longer you focus on watching the computer screen / tablet / other gadget, your focus will decrease, so that your decision-making ability will decrease. This will make you miss opportunities or worse, open a position when conditions are not favorable. So to minimize risk, we must understand when the market is in turbulent conditions and determine the best time to execute your trading strategies and techniques.
In general, the forex market is divided into 3 sessions: Session Asia, Europe, and America. Traders often refer to this session as: Session Tokyo, London, and New York. This name is used by traders to represent the central financial forces that move in each session. At each session, market conditions will be most active when the above mentioned financial forces transact within the market, as do most banks and companies conducting their daily transactions, and there are also traders / hedge funds that open positions in the market Forex.
Tokyo session
When the market begins to revive after the end of the holiday weekend, the strength of the Asian regional sector is often the main driver. The activity of the forex market in this session is represented by the Tokyo capital market movement, which is active from 7 am to 1 pm. However, there are several other countries that helped push the movement of forex market disesi this as China, New Zealand, Russia, and Australia, as well as several other countries. The amount of active financial strength, it makes sense that the beginning and end of the Asian session is longer than the Tokyo capital's active time clock. So the Asian session is often explained start running from 6 am to 3 pm.
London Session
Shortly before the Asian session ends, the European session comes in and keeps the forex market moves to stay active. This session is very crowded and is inhabited by a large financial force that is viewed strongly in any economic situation. London, being a representative of his country to hold the honor of being a parameter in the European session. Official working hours in London start at 14.30 WIB until 22.30 WIB. Again, similar to the Tokyo session, in the European session not only the UK is the main driver of price movements (for example Germany and France which started before the UK stock market opened), so the active period of this session will be longer. European sessions are often defined starting from 14.00 WIB to 23.00 WIB.
New York session
When the New York session begins, the capital markets in the Asian continent have ended their activities and the European market has just entered its mid-hour. This session is dominated by financial activities in the United States, with contributions from Canada, Mexico and some countries that reside in the South American continent. And there is a habit that the activities of New York City always bring a surprise in the Forex market, which then impact on the high price movements seen on your chart. If we consider capital market activity, commodity buying and news releases / economic indicators that occur earlier than the official hours of the New York stock market, then the American session starts from 19.00 Western Indonesia Time and then closes at 03.00 WIB.
Influence on certain pairs
If you see in the picture above, each pair has a time where they will look active and bring up many opportunities for intraday traders. Pair EURUSD & GBPUSD for example; Will become active when one of the financial powers in London or America enters its working hours; And will become very active and tend to fluctuate when there is an overlap of the active period of both markets (which happens at 19.00 WIB until 23:00 pm). Similarly, with other pairs, when you know where the country is in each session, you can use overlap from those sessions to focus on your chart, because in an active market there will be many opportunities.
However, keep in mind that when there is a release of economic indicators / news for one pair, then it will still affect the price movement of the pair, despite the fact that the news release is outside the main session of the pair.
Trading session in Forex
There are limited times where you can focus on trading. The longer you focus on watching the computer screen / tablet / other gadget, your focus will decrease, so that your decision-making ability will decrease. This will make you miss opportunities or worse, open a position when conditions are not favorable. So to minimize risk, we must understand when the market is in turbulent conditions and determine the best time to execute your trading strategies and techniques.
In general, the forex market is divided into 3 sessions: Session Asia, Europe, and America. Traders often refer to this session as: Session Tokyo, London, and New York. This name is used by traders to represent the central financial forces that move in each session. At each session, market conditions will be most active when the above mentioned financial forces transact within the market, as do most banks and companies conducting their daily transactions, and there are also traders / hedge funds that open positions in the market Forex.
Tokyo session
When the market begins to revive after the end of the holiday weekend, the strength of the Asian regional sector is often the main driver. The activity of the forex market in this session is represented by the Tokyo capital market movement, which is active from 7 am to 1 pm. However, there are several other countries that helped push the movement of forex market disesi this as China, New Zealand, Russia, and Australia, as well as several other countries. The amount of active financial strength, it makes sense that the beginning and end of the Asian session is longer than the Tokyo capital's active time clock. So the Asian session is often explained start running from 6 am to 3 pm.
London Session
Shortly before the Asian session ends, the European session comes in and keeps the forex market moves to stay active. This session is very crowded and is inhabited by a large financial force that is viewed strongly in any economic situation. London, being a representative of his country to hold the honor of being a parameter in the European session. Official working hours in London start at 14.30 WIB until 22.30 WIB. Again, similar to the Tokyo session, in the European session not only the UK is the main driver of price movements (for example Germany and France which started before the UK stock market opened), so the active period of this session will be longer. European sessions are often defined starting from 14.00 WIB to 23.00 WIB.
New York session
When the New York session begins, the capital markets in the Asian continent have ended their activities and the European market has just entered its mid-hour. This session is dominated by financial activities in the United States, with contributions from Canada, Mexico and some countries that reside in the South American continent. And there is a habit that the activities of New York City always bring a surprise in the Forex market, which then impact on the high price movements seen on your chart. If we consider capital market activity, commodity buying and news releases / economic indicators that occur earlier than the official hours of the New York stock market, then the American session starts from 19.00 Western Indonesia Time and then closes at 03.00 WIB.
Influence on certain pairs
If you see in the picture above, each pair has a time where they will look active and bring up many opportunities for intraday traders. Pair EURUSD & GBPUSD for example; Will become active when one of the financial powers in London or America enters its working hours; And will become very active and tend to fluctuate when there is an overlap of the active period of both markets (which happens at 19.00 WIB until 23:00 pm). Similarly, with other pairs, when you know where the country is in each session, you can use overlap from those sessions to focus on your chart, because in an active market there will be many opportunities.
However, keep in mind that when there is a release of economic indicators / news for one pair, then it will still affect the price movement of the pair, despite the fact that the news release is outside the main session of the pair.
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