Which Currency Pairs are worth watching? And when?
I just ran lately across a great presentation (if this data looks familiar to you, please let me know, so I can link back!) which also included information about trading ranges of currency pairs in different sessions. As price action is vital to Forex trading, I decided to give a short overview about this topic to make sure, beginners are using their trading time efficiently.
The following chart shows you the average trading range of currency pairs during the different sessions. As you can see, there can be huge differences. This chart can be helpful in two ways: First, determine the most interesting currency pairs for trading and, second, determine the right time to do so.
An obvious result is that the European session is apparently the most interesting session in terms of price action and volatility. So its no surprise that many traders like to trade the opening hours of the European session, most likely from 7-9am GMT. Then you can sit back and relax until the opening hours of the US session, when volatility increases again (however not as much as during the London open). So with an efficient trading strategy, you can minimize your daily trading to 4 hours (or even less).
But in order to benefit from price action, you also need to choose the right currency pairs. As you can see, different currency pairs possess significant different volatility.
So how you are going to use these facts to your advantage? Lets discuss here or in our Forex community!
Tags: asian session, european session, Forex, FX, london open, market hours, market sessions, trading hours, trading sessions, US session