Trading the Forex Market Sessions

Trading the Forex Market Sessions

When it comes to developing your trading strategy, do not forget to take foreign exchange market volatility to your attention. Exchange in Singapore and 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 to participate in the global forex trading, and not to miss a good opportunity to increase your capital. Each trader must understand and take into account his time of the various sessions of trading on the foreign exchange market at different times of day can behave differently.

Each currency pair traded in the Forex market has some instability where it experiences the greatest movements and changes in prices. It usually happens during certain hours of the day, when the country is active and many events happen. Usually each part of the world has the greatest impact on its currency, so you know during each trading can give you the idea that currencies that it is better to trade.

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

The fact is that after the London meeting was over, many large investors wishing to transfer their investments from European currencies to the U.S. dollar. As at the time of New York (USA) session starts to be the second largest foreign exchange market turnover. Knowing the time in different sessions and their characteristics, can become the basis for the development of the trading system. New York session is open from 12.00 to 20.00 hrs. The highest volatility during the day is seen between 12.00 to 14.00, when both European and U.S. sessions are open.

After the session is over U.S. Tokyo session starts, which runs from 0.00 to 8.00 pm. This session includes all of Asia and major financial centers such as Singapore forex trading, and Hong Kong. The greatest attention at this time is given currency pair GBP / CHF and GBP / JPY on average daily range of about 100 pips. Exchange rate in Singapore is also focused on choice, SGD and NZD currencies. And considering the choice of different sessions on specific currency pairs, you can build a trading strategy that takes into account time zones, when the appearance of this trend is likely. Using factor during the trading sessions and some technical indictors proven key to creating a successful trading system.