Forex sessions and their properties

[north5]

It has occurred to me that trading a market which is in fact 3 markets in 3 timezones requires the analysis to take this into account. Doing this will allow the choice of strategy taking into account more accurate assessment of the time/pair to be more successful.

I also think this property of the markets invalidate many indicators as their values will be an average of the three, not that I use them much - but do use some like ATR.

I am just starting on this so was wondering if anyone had any good patterns/info to share. I'm happy to share what I find (it may be in a while).

One thing I do notice instantly from just a visual on EUR/USD is that in choppy markets there seems to be reversals around the opens - usually in both directions and then a general direction is set until the next open. Also big moves tend to take place in US session with the Asian market the least - but I guess this is just plain common sense!

 

[north5]

So nobody else looks at individual trading sessions then?

From what I can tell on EUR/USD there are reversals at the start of each trading session almost every day. Start of Asian, and about 9:30 UK is almost a given by the seems of it.

Think I'm going to have to write an EA to test the theory.

 

[JTrader]

From UK time, i know afternoons can be messier than mornings, due to US news etc. Though not always.

I just try to wait for the fairly good looking setups, whatever time of day it is. If they do not arise, i do not trade. Usually i get plenty of good bites of the cherry per day though, so can afford to be reasonably picky.

Each pair does have its peak session though, related to its countrys timezone. eg. 2100-0600 UK time is quieter for GD & ED.