London Forex Rush
Stock trading and forex trading are altogether two totally different beasts. Stock exchanges are open only for a fixed time each day. You can only trade stocks during this time. On the other had the forex markets are open 24 hours, 5 days a week.
This continuous 24 hour trading makes forex markets somewhat confusing for the beginners. Forex is traded Over the Counter (OTC) and there is essentially no open and close of the market, many new traders find it hard to adjust.
Now, how to provide a open and close session for each day so that you dont have to sit in front of your computer all day getting yourself exhausted. An ingenious way is to divide the day into three eight hour session.
Further divide each 8 hour session into two 4 hour sessions using a 4 hour chart. This division of 24 hours is logical as there are only three major money centers in the world that have the capacity to move the forex markets.
The three money centers are: Asia, London and New York. Each session is going to coincide with these three money centers. We will call each session as the Asian, the London and the New York Session.
Asian Market Session: Sydney, Tokyo, Hong Kong and Singapore are the main cities that participate in this session. Major players are the export corporations and the central banks. Sydney opens and with that the forex markets become alive each day. Most of the price action that takes place in this session is unsustainable and jumpy.
London FX Market Session: London FX Market is by far the most well developed and highly liquid market in the world. Due to the depth of the London market, the price action that takes place during this time forms the major moves that are going to continue for the rest of the day. These price moves tell you about market sentiments and the trend.
New York Market Session: New York is second to London. Both New York and London overlap in the morning when New York is opening and London is closing. This is the best time of the day for savvy traders to trade as there is a lot of price action during this time.
The following table gives important times of the day that any forex trader needs to know: 00:00 GMT-Sydney Opens. 11:00 GMT-London opens. 15:00 GMT- London becomes very active. 17:00 GMT- London is active and New York opens. 18:00 GMT- London and Europe closes. 19:00 GMT- New York and Chicago getting ready for a close!
This overlapping between London and New York is when major price action takes place and new trends are formed or old trends are reversed. London is the market trend setter in fashion as well as forex. - 23167
This continuous 24 hour trading makes forex markets somewhat confusing for the beginners. Forex is traded Over the Counter (OTC) and there is essentially no open and close of the market, many new traders find it hard to adjust.
Now, how to provide a open and close session for each day so that you dont have to sit in front of your computer all day getting yourself exhausted. An ingenious way is to divide the day into three eight hour session.
Further divide each 8 hour session into two 4 hour sessions using a 4 hour chart. This division of 24 hours is logical as there are only three major money centers in the world that have the capacity to move the forex markets.
The three money centers are: Asia, London and New York. Each session is going to coincide with these three money centers. We will call each session as the Asian, the London and the New York Session.
Asian Market Session: Sydney, Tokyo, Hong Kong and Singapore are the main cities that participate in this session. Major players are the export corporations and the central banks. Sydney opens and with that the forex markets become alive each day. Most of the price action that takes place in this session is unsustainable and jumpy.
London FX Market Session: London FX Market is by far the most well developed and highly liquid market in the world. Due to the depth of the London market, the price action that takes place during this time forms the major moves that are going to continue for the rest of the day. These price moves tell you about market sentiments and the trend.
New York Market Session: New York is second to London. Both New York and London overlap in the morning when New York is opening and London is closing. This is the best time of the day for savvy traders to trade as there is a lot of price action during this time.
The following table gives important times of the day that any forex trader needs to know: 00:00 GMT-Sydney Opens. 11:00 GMT-London opens. 15:00 GMT- London becomes very active. 17:00 GMT- London is active and New York opens. 18:00 GMT- London and Europe closes. 19:00 GMT- New York and Chicago getting ready for a close!
This overlapping between London and New York is when major price action takes place and new trends are formed or old trends are reversed. London is the market trend setter in fashion as well as forex. - 23167
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in Investing, Stocks and Forex Trading. Discover a revolutionary new Forex Robot.
posted by X - Men @ 10:19 AM
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