When the US session overlaps with the London forex market session it is considered to be the most liquid period of the day. The New York forex session opens at AM ET and closes at PM ET. The London Forex market session opens at AM ET and closes at PM ET, so the overlap occurs between AM ET and PM ET. The beginning of the New York session is normally more volatile than later in the day. There are different methods traders can use to trade differing levels of volatility.

These are the two largest market centers in the world, and during this four-hour period — large and fast moves can be seen during the overlap as a large amount of liquidity enters the market. To trade the overlap, traders can use a break-out strategy which takes advantage of the increased volatility seen during the overlap. As London closes for the day, volatility will have a tendency to decrease drastically. As you can see, the later part of the New York session displays less volatility.

Since the average hourly moves are smaller in the later stages of the New York session traders could use a different trading strategy, like a range trading strategy.

Using a range trading strategy trader take advantage of support and resistance levels. The chart below shows an example of a range trading strategy. When the price moves the upper bound red line traders will look to short the currency pair. When the price moves the lower bound the green line traders will look to buy the currency pair. Because of this, range trading is more likely to benefit you. There are several pairs that you can successfully trade during the NY session.

Given that the NY and London sessions overlap for four hours, most major currency pairs have USD, EUR, and GBP. The best pairs to trade during the New York Session are USD-related forex pairs because of US market-related news, higher volume and volatility, and possible trend-following direction. The best US session pairs for trading are:. These pairs become more liquid during the US session and EU session overlap.

Every Forex trading session comes with its share of unique characteristics. The market begins with the NY session, chased by the London session. Finally, the London session is tracked by the Asia session. Trading will be lower when the market has high liquidity because of the reduced spreads. Since the overlap witnesses a combination of high volatility and liquidity, traders find plenty of opportunities to make profits. With European traders and financial institutions frequently participating in the market during this time, there is always a strong underlying demand for buying and selling the currency pair.

Additionally, the US session often overlaps with the opening of major Asian markets, further increasing volatility and market activity.

This pairing is closely correlated with broader economic health and can therefore be used as a barometer to assess the overall state of these two giant economies. Traders will typically watch this pairing very closely, paying particular attention to any significant changes in sentiment that could potentially impact global trade and investment flows. For this reason, traders who can successfully predict these changes can profit from significant market movements by positioning themselves on either side of the pairing.

This means you can make money even when other assets are falling in value, giving you plenty of profit opportunities. Privacy Policy. Home Choose a broker Best Forex Brokers Learn trading Affiliate Contact About us. Home » FAQ » The Best Pairs to Trade During New York Session — New York Session Forex Pairs. Table of Contents. Author Recent Posts. As we have discussed the average pip movement in the Tokyo session and the London session, let us compare the pip movement by considering all the three sessions.

The London session tops the table, which is then followed by the New York session and, finally, the Tokyo session. Now, let us see the average pip movement for some of the extensively traded currencies in the market. The New York session opens at AM EST, which is during the London session. That is, there is an overlap between the two sessions.

Hence, this is an ideal time to enter the market as the spreads are quite low during this phase of time. During the New York session, the economic news begins to drop. So, news traders can keep a close watch on all the US Dollar pairs as the news typically moves the market drastically.

During the market open, the liquidity of the market is excellent, but as the noon approaches, it begins to drop. That is, during lunch hours, the market goes into a consolidation phase. Another interesting fact to consider is, the market loses its momentum on Friday afternoon as the weekend begins for the Asian and the European markets. Hence, it is not a good idea to trade on Friday afternoons. Apart from momentum, it is possible for the markets to reverse its direction as the traders might look to square their positions off.

The liquidity during the start of the session is excellent, as the London markets are open as well. So, during this time, you can choose to trade any pair. However, it is recommended to concentrate more on the major and minor currency pairs.

Several news events come in during this session.

After the Asian and the London session, the big fishes enter into the market, i. Precisely, the New York session begins at AM EST.

This session is also referred to as the North American session. The liquidity during this session is pretty high. As we have discussed the average pip movement in the Tokyo session and the London session, let us compare the pip movement by considering all the three sessions. The London session tops the table, which is then followed by the New York session and, finally, the Tokyo session. Now, let us see the average pip movement for some of the extensively traded currencies in the market. The New York session opens at AM EST, which is during the London session.

That is, there is an overlap between the two sessions. Hence, this is an ideal time to enter the market as the spreads are quite low during this phase of time. During the New York session, the economic news begins to drop. So, news traders can keep a close watch on all the US Dollar pairs as the news typically moves the market drastically.

During the market open, the liquidity of the market is excellent, but as the noon approaches, it begins to drop. That is, during lunch hours, the market goes into a consolidation phase. Another interesting fact to consider is, the market loses its momentum on Friday afternoon as the weekend begins for the Asian and the European markets. Hence, it is not a good idea to trade on Friday afternoons. Apart from momentum, it is possible for the markets to reverse its direction as the traders might look to square their positions off.

The liquidity during the start of the session is excellent, as the London markets are open as well. So, during this time, you can choose to trade any pair. However, it is recommended to concentrate more on the major and minor currency pairs.

Several news events come in during this session. So, a news trader can take advantage of them, although a novice trader should stay away from pairs affected by such events, as it requires abilities unrelated to technical analysis. Therefore, all in all, the New York session is a session that can be profitable for all types of traders.

The volatility of the market during this session stands in between the London session and the Asian session. We have completed this short tutorial in the New York session.

And in the next lesson, we shall go more precisely into when exactly to trade the Forex market. Save my name, email, and website in this browser for the next time I comment. About Us Advertise With Us Contact Us. Forex Academy. Home Forex Education Forex Course What Should You Know About Trading The New York Session. RELATED ARTICLES MORE FROM AUTHOR. Inter Market Analysis At A Glance. The Affects Of Stock Market On The Foreign Exchange Market.

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The US and the London Forex sessions are the big guns in Forex trading. Table of Contents. Finally, the London session is tracked by the Asia session. Please enter your comment! Please enter your name here.

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