Hello, this is Kirill from ForexBoat.com and welcome back to the course on Forex
Trading in today's tutorial.
We will talk about Forex Market hours.
We will see in which timezone the Forex Market operates and how it
so happens that the Forex Market is so different to any stock market in the
way that it works 24 hours a day, for this tutorial.
I really wanted to show you a global map of the world with the Forex
sessions visualized on it.
And because I couldn't find a decent one on the net I went ahead and
It one of my own and this is what it looks like
and I'll definitely share it with you by giving you the link to download it
at the end of this tutorial.
So on this map at the bottom, we've got a Time axis
and the way to read it is from right to left
because the sun rises from east to west
that axis is in a GMT time and then we've got
the four main Forex sessions starting from bottom to top as they commenced.
Through a new day.
So the first one is the Sydney session then it's a Tokyo session
then it's London session.
And then it's the New York session.
So what can we see from this visualization of the Forex Market hours
and how can we use this in our trading?
Let's have a closer look at the sessions one by one and see what exactly
happens
over 24 hour period on the Forex market.
So, the Australian session you will notice that the very first session to open
during any given day is the Sydney
Forex Market session
and Australians are the First Nation to wake up into a new day.
It's still 22 hours.
So 10 p.m.
Of the previous day in London when Sydney banks open up.
So this means that if you live in Europe or in the US and it's
Tuesday,
then you can already trade the Wednesday
Sydney Forex Market session and that's just a
mind-blowing fact that I was very interested to learn when I first got into Forex
also you may ask what about the New Zealand session and that's a Fair
Point New Zealand is located even more to the right from Australia and the New
Zealand session starts about two hours before the Sydney session.
However, without the Australian session the liquidity on the New Zealand Market is very low
and so that's why people focus on the Sydney session rather than in New Zealand
session, moving on.
The next session is the Tokyo session which follows shortly after this session is also
called the Asian session.
Because right off the Tokyo
large economic hubs like Singapore and Hong Kong start waking up
the Asian session starts around midnight GMT when most of Europe is still in a
deep sleep and this is why you often hear European Traders talking about waking up
at 3 a.m.
Just to trade the Asian session before going back to bed.
Also, you may have already noticed that some of the Forex sessions
overlap quite significantly. For example, the Australian session and Asian sessions overlap for the
Majority of the Forex Market hours
and the good news is that you can use this knowledge to your advantage.
Naturally when these two
sessions overlap currency pairs like the AUDJPY
and the NZDJPY will have their highest volatility.
The next session that follows the Tokyo session is the London session.
Undoubtedly, London is the economic Center of Europe and it's essential that the European session
is also called the London session
moreover,
By the time banks open up in Great Britain
other major economic hubs like Frankfurt, Luxembourg and Zurich
have already started into their Forex Market hours for the day
an interesting observation.
Is that the Forex hours of the Tokyo and London sessions
overlap for approximately one hour and this varies a little bit for other European countries,
and you can and you probably should use this fact to your advantage
this slight overlap means that
all of the crosses of
European currencies and the Japanese Yen
will have their highest volatility at the start of the European session.
So if you're trading the British pound Japanese Yen, for instance.
You can simply carry out a few very powerful trades between 8:00 a.m.
And 9:00 a.m.
GMT and then you're free for the day and some Traders actually do that.
They capitalize on this narrow window of time when both sessions are open.
They take the most out of the movements of
volatile currency pairs like the GBPJPY,
and
then they finished their trading very early on in the day
and they have the rest of the day for themselves.
And finally, the last session to open up is the New York session
Forex Market hours in the US
start with New York.
And this is because
New York is one of the biggest Financial Centers in the world and it is
the East most major city in America.
The American session also includes other major economic hubs like Chicago,
which is the world's largest derivative market and let's not forget about Toronto which is
a major Canadian Financial Hub.
So what happens when you put more firewood into a fire?
That's right.
It burns even harder and saying thing happens here
New York and London are the two of the world's
biggest Financial Centers
and the American session starts when the European session is only halfway through
and of course you're going to get an extremely fast-paced and volatile market
during that overlap.
And once again, you can profit from this
a lot of the major pairs like the EURUSD
GBPUSD and the USDCHF experienced massive movements and
specific patterns during this time.
In fact, I created a holistic trading strategy for the GBPUSD
just based on this one fact, the strategy is called simple system version 6.0
and you can find it in my Forex robots course,
it uses an extremely profitable pattern that I discovered for the British pound dollar
and in that course, I give it away for you to for free.
So if you're interested definitely check out that course
And finally to sum up the Forex Market hours.
Let's have a look at the end of the New York session
as you can see,
even though the Sydney session and the New York session do not overlap.
They follow each other
back to back
and this illustrates why the Forex Market is open 24 hours a day.
If you take
any time zone on this map at least one for accession will always be open
and in the end.
I'd like to say that whatever your trading strategy is it is
Is beneficial to keep in mind the Forex Market hours or the Forex sessions
This is because different sessions are dominated by different types of Traders, Banks, governments,
and as we discussed different types of currency Pairs
and taking this into account will certainly give you
a competitive advantage over other Forex Traders.
So that brings us to the end of this tutorial as promised.
Here's the link to this map.
Just go to www.forexboat.com
www.forexboat.com/forex-market-hours
and there you can get this map in HD resolution.
I'm also planning on releasing a map like this for every single time zone.
So soon enough you'll be able to download this map specific to your location.
And because it's in HD unlike other Forex maps on the net
you can even use it as your
desktop wallpaper
and that is very handy to always have it in front of your eyes so
you can quickly reference
in which
Forex Market session you are currently trading on that note.
I'll wrap up today's tutorial when you do visit me on forexboat.com.
Don't forget to subscribe to the newsletter so that you can get access to more
free tools like this and other tips and tricks.
I look forward to seeing you next time and until then Happy Trading.