Getting nowhere in trading? Try to change your trading session

If you are not getting consistent results in trading even by having a very good forex trading strategy, try to change the time you take trades. 

Yes the time at which you take trades play a very important role in winning or losing.

Volume and profit:

 The flow chart below shows you relation between volume and profit in any forex trading strategy.

When more people are trading a particular currency pair there will be an increase in its volume. Increased volume will always result in strong movements in price of that pair and strong movements surely means more pips. If you can identify to which direction the price is havingstrong movement you can ensure more profit.

For each and every currency pair the volume is different at different times of a financial day.

Trading sessions:

See the above table. This shows how a 24 hour financial day in forex market is divided. The time shown is in GMT.

A financial day is divided in to 4 main sessions such as Asia, Pacific, Europe and America. 

Asian session which contains Tokyo and Hongkong will end at 9. 00 am GMT. By that time Europe session would have started with London at 8.00 am GMT. Europe session will end at 4.00pm. American session will start at 1.00 pm GMT an end at 11.00 pm. Pacific session start at 10.00 pm GMT and end at 7.00 am. ( There will be a difference of 1hr forward or backward  in the values given above due to DST(day light saving ) observed in certain time zones).

So throughout the day one or other financial market is open. By the time one market closes other would have opened in another place. This is why you are able to trade currency throughout the day.

Session overlapping:

If you take a closer look at above table you can see that there are certain time periods where two sessions are open. This is called overlapping.

Trading volume will be at its highest during overlapping.

Major overlaps:

• Sydney + Tokyo
• Tokyo + London
• London + Newyork

These are major overlaps. 

 Volatility will be very high during these overlaps as traders from both time zones will be actively taking part in the market. 

• Among these London session is the best trading session according to my opinion as for the first 2 hours London session is overlapping with Tokyo session and for last 3hrs with American session.

Pip range of major currency pairs in each session.

The above table is taken from baby pips http://www.babypips.com/school/trading-sessions.html which show the average price movement of major currency pairs in each session.

 The study shows that for almost all major pairs London session is the one with maximum pip movement.

This chart will be extremely useful for you to select which currency pair to be traded at which time.

 For e.g.: pairs with JPY will have good movement in Asian session. So it is safe to trade those pairs in Asian session. Pairs like EUR/USD, GBP/USD will not show much movement during Asian session. It is safe to trade those pairs after Europe opens.
Mr.Clint from Babypips have given an excellent chart regarding time zones. I hope this will be really helpful to you all. Here is the linkhttp://forums.babypips.com/newbie-island/51996-forex-trading-sessions-march-2013-september-2013-a.html#post466980