At the opening of each trading session on the Forex market, you can mention more active movements of the pairs. Pay attention to considerable volatility an hour before the close of each session as well. These time-periods can be used for the most effective trading.
*Asian session: from 00:00 to 09:00 GMT
The main players during this time are Chinese, Japanese and Australian markets. It is clear that the greatest volatility and profit in this period are expected from pairs with JPY and AUD.
Normally, during the Asian session, the market is pretty calm, except for the period of important macro economical news in 4:00 or 4:30.
From 7:00 to 10:00 volatility on the market is the lowest — Asians "sold out", and Europeans are just waking up. At this time it is better not to enter the market. So, knowing about this time, allotted to this forex session, you can effectively plan your trading day.
**European session: from 05:00 to 14:00 GMT
From 10:00 to 13:30 is the greatest time to trade, when Europeans are just beginning their working day. Usually at the beginning of the session you can notice a pronounced movement that can last all day. The most important news comes out at 13:00-14:00 hours. Optimal pairs to choose for trading are EUR/USD and EUR/JPY.
From 13:30 to 17:00 on, the market "hosts" London. Respectively, it's worth it to pay attention to the currency pairs with GBP. London is the largest and the most important financial center in the world. A large number of participants and significant volume of transactions make London’s market one of the most volatile and important on Forex. Each trader must know the schedule of trading sessions in London.
At 14:00-15:00 usually the UK news is released.
***American session: from 12:00 to 21:00 GMT
At this time the market volume increases. This session is also characterized by high volatility. At the same time, Americans are continuing the movement given by Europeans. The highest activity on the market is from 17:00 to 19:00. At 16:30 the news often airs in the USA. This information always gives courses of acceleration movements.
Overlap of American and European sessions: from 12:30 to 15:00 GMT
The activity and volatility in the market reaches its climax, because within this period two largest world markets are trading at the same time. During this overlap usually takes place up to 70% of all transactions of the European session and 80% of American one.
Overlap of the European and Asian sessions: from 07:00 09:00 GMT
Within this period the lowest activity takes place. During those two hours the market is too calm and can be used by newbies and traders, who are afraid of the risks of European trading.
Thus, each trader should remember the nuances of the trading session schedules. Without this information you risk to let pass the optimum time of entering the market.