First, let's look at the four most important trading sessions. The Forex and stock market is divided into different trading sessions, which are based on the opening hours of the main financial centers:
Session Opening Hours (UTC) Major Markets:
-> Sydney session 22:00 – 07:00 Australia, New Zealand
-> Tokyo session 00:00 – 09:00 Japan, China, Singapore
-> London session 08:00 – 17:00 UK, Europe
-> New York session 1:00 p.m. – 10:00 p.m. USA, Canada
Note: Times vary slightly depending on summer or winter time.
Why are trading sessions important?
-> Volatility & Liquidity
Depending on the session, there are different market movements.
High liquidity → tight spreads and better order execution.
Low liquidity → greater slippage and wider spreads.
-> Active currencies & markets
During the Tokyo session, JPY and AUD pairs are particularly active.
During the London session, EUR and GBP pairs are the most volatile.
During the New York session, USD pairs and stock markets moved the most.
Opportunities & risks during overlapping times:
The overlaps between sessions are the most volatile times because several major markets are active at the same time.
1. London-New York Overlap (13:00 – 17:00 UTC)
→ Highest volatility
Why?
The world's two largest financial centers operate at the same time.
Opportunities:
Big price moves → good for breakout traders and scalping.
High liquidity → tight spreads, fast order execution.
Risks:
Extreme volatility → rapid price changes can trigger stop losses.
News (e.g. US jobs data) can cause sudden movements.
Practical example:
A trader is watching EUR/USD and sees strong resistance at 1.1000.
US inflation data will be released at 13:30 UTC.
If the data is better than expected → USD strengthens, EUR/USD falls.
If the data is worse → USD weakens, EUR/USD rises.
Within a few minutes the price can fluctuate by 50-100 pips.
→ Strategy: News traders rely on quick movements, while conservative traders extend stop losses or pause during this time.
2. Tokyo-London Overlap (08:00 – 09:00 UTC)
→ Medium volatility
Why?
London opens while Tokyo is still active.
Opportunities:
JPY pairs (e.g. GBP/JPY) are moving strongly.
Breakouts through the European opening.
Risks:
Sudden changes in direction as European traders often have a different market opinion than Asian ones.
Practical example:
A scalper is trading GBP/JPY in a narrow range of 185.00 – 185.20 during the Tokyo session.
At 08:00 UTC London opens with GBP/JPY breaking above 185.50.
Within 30 minutes the price rises to 186.00 as European traders buy GBP.
If you recognize the breakout early, you can quickly take 50-100 pips.
→ Strategy: Scalpers rely on quick entries and take profits before volatility subsides.
3. Sydney-Tokyo Overlap (00:00 – 07:00 UTC)
→ Low volatility
Why?
Mainly the Asian market is active.
Opportunities:
Less volatility → good for range trading.
Cheaper spreads for AUD and NZD pairs.
Risks:
Little liquidity → Slippage may occur.
Strong moves are rare, except for major news from Japan or Australia.
Practical example:
A swing trader notes that AUD/USD has been fluctuating between 0.6500 and 0.6550 for days.
During the Sydney-Tokyo session the price mostly stays in this range.
The trader places a sell limit order at 0.6550 and a buy limit order at 0.6500.
Since there is little volatility, it can be profitable with multiple small trades.
→ Strategy: Range trading is ideal because no major breakouts are expected.
Conclusion:
Each trading session has its own characteristics, opportunities and risks.
The crossovers are the most volatile times - good for day traders, but risky for inexperienced traders. Anyone who understands the market mechanisms can take targeted action at the right time. The strategies mentioned above are simply derivations from the advantages and disadvantages of the respective sessions. Of course, a well-founded strategy concept requires much more.
Session Opening Hours (UTC) Major Markets:
-> Sydney session 22:00 – 07:00 Australia, New Zealand
-> Tokyo session 00:00 – 09:00 Japan, China, Singapore
-> London session 08:00 – 17:00 UK, Europe
-> New York session 1:00 p.m. – 10:00 p.m. USA, Canada
Note: Times vary slightly depending on summer or winter time.
Why are trading sessions important?
-> Volatility & Liquidity
Depending on the session, there are different market movements.
High liquidity → tight spreads and better order execution.
Low liquidity → greater slippage and wider spreads.
-> Active currencies & markets
During the Tokyo session, JPY and AUD pairs are particularly active.
During the London session, EUR and GBP pairs are the most volatile.
During the New York session, USD pairs and stock markets moved the most.
Opportunities & risks during overlapping times:
The overlaps between sessions are the most volatile times because several major markets are active at the same time.
1. London-New York Overlap (13:00 – 17:00 UTC)
→ Highest volatility
Why?
The world's two largest financial centers operate at the same time.
Opportunities:
Big price moves → good for breakout traders and scalping.
High liquidity → tight spreads, fast order execution.
Risks:
Extreme volatility → rapid price changes can trigger stop losses.
News (e.g. US jobs data) can cause sudden movements.
Practical example:
A trader is watching EUR/USD and sees strong resistance at 1.1000.
US inflation data will be released at 13:30 UTC.
If the data is better than expected → USD strengthens, EUR/USD falls.
If the data is worse → USD weakens, EUR/USD rises.
Within a few minutes the price can fluctuate by 50-100 pips.
→ Strategy: News traders rely on quick movements, while conservative traders extend stop losses or pause during this time.
2. Tokyo-London Overlap (08:00 – 09:00 UTC)
→ Medium volatility
Why?
London opens while Tokyo is still active.
Opportunities:
JPY pairs (e.g. GBP/JPY) are moving strongly.
Breakouts through the European opening.
Risks:
Sudden changes in direction as European traders often have a different market opinion than Asian ones.
Practical example:
A scalper is trading GBP/JPY in a narrow range of 185.00 – 185.20 during the Tokyo session.
At 08:00 UTC London opens with GBP/JPY breaking above 185.50.
Within 30 minutes the price rises to 186.00 as European traders buy GBP.
If you recognize the breakout early, you can quickly take 50-100 pips.
→ Strategy: Scalpers rely on quick entries and take profits before volatility subsides.
3. Sydney-Tokyo Overlap (00:00 – 07:00 UTC)
→ Low volatility
Why?
Mainly the Asian market is active.
Opportunities:
Less volatility → good for range trading.
Cheaper spreads for AUD and NZD pairs.
Risks:
Little liquidity → Slippage may occur.
Strong moves are rare, except for major news from Japan or Australia.
Practical example:
A swing trader notes that AUD/USD has been fluctuating between 0.6500 and 0.6550 for days.
During the Sydney-Tokyo session the price mostly stays in this range.
The trader places a sell limit order at 0.6550 and a buy limit order at 0.6500.
Since there is little volatility, it can be profitable with multiple small trades.
→ Strategy: Range trading is ideal because no major breakouts are expected.
Conclusion:
Each trading session has its own characteristics, opportunities and risks.
The crossovers are the most volatile times - good for day traders, but risky for inexperienced traders. Anyone who understands the market mechanisms can take targeted action at the right time. The strategies mentioned above are simply derivations from the advantages and disadvantages of the respective sessions. Of course, a well-founded strategy concept requires much more.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For further questions and comments::
Whatsapp:
wa.me/message/QTFPLGKOMKANE1
Unsere kostenloser Discord Server:
mee6.xyz/i/lvbW2ClmUW
Whatsapp:
wa.me/message/QTFPLGKOMKANE1
Unsere kostenloser Discord Server:
mee6.xyz/i/lvbW2ClmUW
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.