The forex market can be broken up into four major trading sessions;
Open times are based on local business hours, which will vary according to daylight savings hours in each applicable location.
It is a very important part of my trading system to only trade the busiest sessions in the forex market, and these are both the London and New York sessions.
While big moves can happen at any time of the day, and the forex market is open 24 hours a day for over 5 days of the week, I am only interested in trading when there is the most liquidity and the highest number of traders participating in the market.
This happens to be the London and New York Sessions.
Technically you will have the highest liquidity in the crossover of both those market sessions, which is the time I am usually trading.
All the way along my educational journey in forex I have been instructed by experienced traders to stick to the Euro and US sessions, and it is a rule that I adopt without exception.
The larger the time frame you are trading, the less important it is to only trade the highest volume sessions. If you are trading 2 hour bars or higher, it wouldn’t make sense to limit yourself to specific sessions. You will likely need in that case sessions outside of London and New York in order to give your trade the time it requires to move sufficiently in your favour.
The only other point I would like to make is that you should research what the non-farm payroll is if you don’t already know. It doesn’t relate to a trading session so much as it is a day each month which affects trading conditions significantly, and extra care and/or absence is necessary on that day.
