Why Trading Sessions Matter in Forex: Key OverlapsThe Forex market is open 24 hours a day during the weekdays, allowing traders flexibility to trade at any time. However, understanding the best times to trade is essential for effective trading. The market is divided into four main sessions: Sydney, Tokyo, London, and New York, each corresponding to peak activity in key financial centers. Using a Forex Market Time Zone Converter can help traders determine which sessions are active in their local time, making it easier to plan around high-liquidity periods.
Although the market is technically always open, not all trading times are equally profitable. Higher trading volume, which generally occurs during session overlaps, creates ideal conditions for traders. For example, the overlap of the London and New York sessions sees the highest volume, with more than 50% of daily trades occurring in these two centers. Trading at this time, especially with currency pairs like GBP/USD, can lead to tighter spreads and quicker order execution, reducing slippage and increasing the likelihood of profitable trades. Similarly, trading AUD/JPY during the Asian session, when the Tokyo market is active, is advantageous due to higher trading activity for these currencies.
Conversely, trading during times when only one session is active, such as during the Sydney session alone, can result in wider spreads and less market movement, making it harder to achieve profitable trades. Planning trades around high-activity sessions and overlaps is key to effective forex trading.
Newyorksession
What is ICT Power of 3?Power of 3 at work on Gold producing a 8.6RR move on 30/06/2023
FOREXCOM:XAUUSD
Ict power of 3 is a strategy that reveal the market maker algorithm model for price delivery.
Power of 3 simply means there are 3 things market makers algorithm do with price in ever trading days.
Those 3 things are; Accumulation, Manipulation and Distribution.
AMD:
A: Accumulation
M: Manipulation
D: Distribution
1. Accumulation: They accumulate liquidity through the delivery of a ranging market.
The purpose for delivering a ranging market is to induce both buyers and sellers to enter the market thinking that price will go in their direction.
2. Manipulation: After accumulating both buying and sell orders, they then manipulate the market to further induce another set of traders which are breakout traders.
But, that particular manipulation move is not their intended direction for the day. They only use it to gather liquidity, Which will then lead them to the next action which is to move and distribute price in their real direction for the day.
3. Distribution: After manipulating price to a particular direction different from their plan, they then distribute price to their original intended direction.
e.g to buy, they will first sell the market and then buy at the discount price level.
Example of Power of 3 on Gold
AMD:
A: Accumulation
M: Manipulation
D: Distribution
Accumulation : Price range during Asian session, accumulating liquidity on both sides of long and shorts.
Manipulation : Price broke the low of the accumulation during London session to take out sell side liquidity and then fill the previous day imbalance.
Distribution : Price move away from the FVG leading to a shift in market structure on 5m time frame, plus a short pull back, follow by a massive move to the upside during the New York session to take out buy side liquidity above.
Bitcoin Day Trader's Money ZoneThis post contains a great tip for all bitcoin traders. I use it every day for my bitcoin trades.
On the chart you see two green vertical lines. These are drawn from 8:30 AM EST to 11:30 AM EST everyday New York Time.
I call the time between these lines Money Zone, which is where Whales/Institutions/MMs/Whatever set up their day trades.
The yellow Horizontal line is high/low made withing the zone and the yellow vertical line is the end of session.
The red vertical lines are for Saturday where this is not applicable, even Sunday is not applicable since these are weekends and big money don't trade on these days. But for a fair number of Sunday's, this idea holds true in my back testing.
What you should notice is, the high/low made during the money Zone is never breached till the end of the session marked by the yellow vertical line.
I have back tested and marked all the money zones for the past 2+ weeks, but you may not be able to see them all in the post, so I am sharing a live link of my chart below.
www.tradingview.com
What you must do is use your regular TA to determine levels of interest, create setups in advance and wait for the money zone.
Now by this time you should already have a bias to where the price is likely to go next and wait for a counter move/manipulation in the opposite direction and comfortably take the trade and relax for the rest of the day or at least till the end of the session.
This is applicable for other sessions like ASIA or London as well, but I have personally found this to be more accurate for the New York Session.
This is not Financial Advice.
🕔Trading Sessions🕔 What are the Operating Hours of the Forex Market?
The forex market is operational 24 hours a day, five days a week, excluding weekends. It commences trading at 5:00 PM EST on Sunday and concludes at 5:00 PM EST on Friday, resulting in a total of 120 trading hours, with a 48-hour break from Friday to Sunday (EST). The forex market caters to global traders, accommodating their needs irrespective of their time zone. The market is divided into distinct "forex sessions" based on global time zones, which experience varying levels of volume and volatility.
Trading hours are subject to variation depending on daylight savings and holiday schedules. During daylight savings periods, regions utilizing this system will observe a one-hour offset in the winter, which reverts to normal in the summer months.
🕔 What Is a Trading Session?
A trading session is a period of time that matches the primary daytime trading hours for a given locale. This phrase will refer to different hours, depending on the markets and locations being discussed. Generally a single day of business in the local financial market, from that market’s opening bell to its closing bell, is the trading session that the individual investor or trader will reference.
The markets for forex, futures, stocks, and bonds all have different characteristics that define their respective trading sessions for a given day, and the primary trading hours naturally differ from one country to another due to contrasting time zones.
Trading session hours can vary by asset class and country. The regular trading session for U.S. stocks starts at 9:30 a.m. and ends at 4:00 p.m. Eastern Time (ET) on weekdays (holidays excepted). These times are primarily driven by the working hours of the New York Stock Exchange (NYSE), which closes early at 1:00 p.m. ET on several occasions throughout the year associated with holidays.
The regular weekday trading session for the U.S. bond market is 8:00 a.m. to 5:00 p.m. ET.3 Futures markets, meanwhile, have different trading hours, depending upon the exchange and the type of commodity being traded.
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New York Open Killzone Explained | Real Trading Concepts8:30 in the morning NY Time is what your eyes
👁️👁️ should be on. This time of day unleashes huge volatility in the market that you can take advantage of if you know how to benefit from it.
Price at this time likes to entrap a lot of retailers to revers against them and take stoplosses.. Every day at this time..A Lot of news, a lot of volatility, and clear direction and price movements..
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Let me know your opinions in comments 😉
Day trading 101Hello Traders!
This video speaks on how to structure and anticipate price action intraday.
If you are a day trade would highly recommend using the sessions to help frame
trades and prepare yourself for success.
Happy Trading!
How to Identify Market Structure and Increase Your ProfitabilityHave you ever wondered, when is the best time to trade?
It all depends on what market structure is present at the current moment.
There are 3 different types of market structure:
1. Ranging
2. Trending
3. Indecisive
During a ranging market, prices can turn rapidly so taking profits quickly is crucial. Not optimal market conditions but can be traded if you don't get greedy.
During a trending market, prices can keep continuing in one direction and not look back. It's better to be more lenient on rolling your stops. Expect the trend to continue and trade accordingly. Once the trend ends, sit back and wait for a clear picture of the market.
During indecisive markets, you want to stay out! Don't touch. Avoid at all costs.
I appreciate you investing your time in your future.
Much Love
Dil
nq. observing broad scope behavior during new york sessions.This isn't exactly cutting edge, high grain analysis, but it's an angle to consider. this market is leveraged differently during the new york session. that allows people to buy more contracts at a time. just a statement of fact, I don't know how that would effect trading strategies.
