You can trade almost anytime as the forex market opens 24 hours during working days. But based on the opportunities provided, New York and London overlap session from 1 PM to 5 PM (GMT) is considered to be the best time by many traders. However, that does not mean other sessions are not tradable. In fact, each market has characteristics that you can take advantage of:
- The Tokyo session (12 AM to 9 AM GMT) is typically slow with minimum volatility, where you can trade USD/JPY and other Asian currency pairs with range-bound strategies during this session.
- Meanwhile, the London session (8 PM to 5 PM GMT) usually provides the best opportunities to trade breakouts from key levels that are formed during the Tokyo session. Euro and Pound are the two most popular currencies during this session.
- As for the New York session (1 PM to 10 PM GMT), traders tend to focus on the earlier part to trade the news from the US and ride the volatility during the overlap session with the London market. The price movement would drastically slow down around the closing of the New York session.