Successful operation in financial markets is a relatively complex activity, which requires taking into account a large number of different nuances in order to achieve the highest result. In particular, Forex market times, which are often ignored by many newcomer traders, can become a problem when trading.
It is necessary to clearly understand the characteristics of a certain trading session. It is necessary to predict the behavior of the market at some point in time.
The most actively traded currency pairs during the period are those that include the Japanese yen (JPY). Extremely high volatility of these assets can be observed at the end of the session, when the Bank of Japan connects to trades. At this point, a large amount of money enters the market, causing significant price movements.
However, such things do not always happen. It is very often possible to observe a situation where the market is very calm during the Asian session, prices do not make strong movements, and volatility is very low. This period is favorable for those traders who prefer to trade in a quiet and mostly side market.
Major currency pairs, notably the euro (EUR) and pound sterling (GBP), show significant trading activity during this period. The period is characterized by the fact that the largest financial centers of the European Union and England are beginning their active work.
Rising volatility, which is partially eroded by lunch, can be observed at the opening of the European session. Closer to the evening, when the American session opens in a short time, there is another rise in market activity.
This trading period is quite aggressive and often unpredictable. When the largest financial institutions in New York begin to operate, strong price movements begin in financial markets.
On the basis of the above, it can be concluded that each session has its own characteristics, which need to be taken into account in the trade process in order to clearly understand the real market sentiment.