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 at the forex markets is something quite novel for many new traders. Forex is traded Over the Counter (OTC) meaning there is no Central Exchange. Forex market is a global market. When one center is opening, another center is closing. This is very important for a new forex trader to understand.
As there is no open and close of the forex market, many new traders get confused and dont know when the best time when major price action takes place is? So they sit in front of the computer all the time and in the end simply exhaust themselves losing their stamina. A clever way is to divide the 24 hour day into three 8 hour sessions.
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.
These three money center that are central to the forex markets are: Asia, London and New York. So by dividing the 24 hours into three sessions 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 Session: London is still the forex capital of the world with deep and highly liquid forex market. Paris, Geneva and Frankfurt also are players in this session. The moves that originate in this session are very important keeping in view the amount of money needed to move a market this deep. These moves give you a lot of information about the market sentiments and positions.
New York FX Market Session: New York is second biggest FX market after London. Both of these markets overlap in the morning when New York is opening and London is closing. This is the time for major action.
The following timings give important breakdown of the 24 hour forex markets: 00:00 GMT-Sydney is opening. 11:00 GMT-Sydney and Tokyo have closed while London opens. 15:00 GMT- London becomes active with lot of turnover. 17:00 GMT- London is still active and New York is opening. 18:00 GMT- London has closed. 19:00 GMT- New York is about to 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. - 23217
This continuous 24 hour trading at the forex markets is something quite novel for many new traders. Forex is traded Over the Counter (OTC) meaning there is no Central Exchange. Forex market is a global market. When one center is opening, another center is closing. This is very important for a new forex trader to understand.
As there is no open and close of the forex market, many new traders get confused and dont know when the best time when major price action takes place is? So they sit in front of the computer all the time and in the end simply exhaust themselves losing their stamina. A clever way is to divide the 24 hour day into three 8 hour sessions.
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.
These three money center that are central to the forex markets are: Asia, London and New York. So by dividing the 24 hours into three sessions 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 Session: London is still the forex capital of the world with deep and highly liquid forex market. Paris, Geneva and Frankfurt also are players in this session. The moves that originate in this session are very important keeping in view the amount of money needed to move a market this deep. These moves give you a lot of information about the market sentiments and positions.
New York FX Market Session: New York is second biggest FX market after London. Both of these markets overlap in the morning when New York is opening and London is closing. This is the time for major action.
The following timings give important breakdown of the 24 hour forex markets: 00:00 GMT-Sydney is opening. 11:00 GMT-Sydney and Tokyo have closed while London opens. 15:00 GMT- London becomes active with lot of turnover. 17:00 GMT- London is still active and New York is opening. 18:00 GMT- London has closed. 19:00 GMT- New York is about to 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. - 23217
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in Investing, Stocks and Forex Trading. Discover a revolutionary new Forex Robot.
posted by X - Men @ 9:45 AM
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