The Forex market is open 24 hours a day, 5 days a week. This sounds great, but it is a trap.
Just because the market is open doesn't mean you should trade. There are "Dead Zones" where price moves sideways for hours (eating your spread), and "Kill Zones" where price moves 100 pips in minutes.
To be a profitable trader, you must stop trading all the time and start trading at the right time.
1. The Asian Session (Tokyo)
Time (Approx): 00:00 – 09:00 GMT
Key Pairs: USD/JPY, AUD/USD, NZD/USD.
Characteristics:
- Consolidation: This is usually the quietest time of the day. Major pairs like EUR/USD often move in a tight 20-pip range.
- The "Trap": Beginners often lose money here trying to trade breakouts that fail.
Strategy: Do not look for huge trends. Use a "Range Trading" strategy (Buy Low, Sell High) or simply stay out and sleep.
2. The London Session (The Big Move)
Time (Approx): 08:00 – 16:00 GMT
Key Pairs: EUR/USD, GBP/USD, EUR/GBP.
Characteristics:
- The "London Open": At 08:00 GMT, liquidity floods the market. This often sets the Trend of the Day.
- Breakouts: Price usually breaks out of the Asian Range aggressively.
Strategy: Look for the Breakout Patterns. If price breaks the Asian High, look for a retest and go Long.
3. The New York Session (The Volatility)
Time (Approx): 13:00 – 22:00 GMT
Key Pairs: All Majors (USD based), Gold (XAUUSD), Indices (US30, NASDAQ).
Characteristics:
- News Releases: Most high-impact news (NFP, CPI, FOMC) happens early in this session (around 13:30 GMT).
- Reversals: Often, New York traders will reverse the trend started in London.
4. The "Golden Hours" (London-NY Overlap)
This is the holy grail of trading times.
Time: 13:00 – 16:00 GMT.
During this 3-4 hour window, both London banks and New York banks are open.
Result: Maximum Liquidity + Maximum Volatility.
- Spreads are tightest.
- Moves are biggest.
- Gold (XAUUSD) moves the most during this time.
Pro Tip: If you can only trade for 2 hours a day, trade this overlap. It is where the money is made.
5. The Weekend Gap
The market closes on Friday at 22:00 GMT and opens on Sunday.
If major news happens on the weekend (e.g., War, Elections), price will "Gap" on Monday open.
Rule: Never hold short-term trades over the weekend unless you are a Swing Trader with wide stop losses. The gap can jump over your Stop Loss and blow your account.
Final Thoughts
Trading is like surfing. You can't surf without waves.
The "Sessions" are the waves. If you paddle out during the Asian session (on EURUSD), the water is flat. You will get tired and frustrated.
Wait for the London/New York tide, and let the volatility carry you to profit.
Now that you know the time, choose the right pair: Best Currency Pairs Guide