The Four Major Trading Sessions
As the Earth rotates, different financial centers open and close. Each session has its own personality, volatility level, and best pairs to trade.
Times shown in EST (New York time). Adjust for your timezone.
🎯 Key Insight
The forex week starts Sunday 5PM EST (Sydney open) and ends Friday 5PM EST (New York close). That's 120 hours of continuous trading, but only about 8-10 hours per day see significant action.
Session Characteristics
Sydney Session
5PM - 2AM ESTBest Pairs
Characteristics
- Quiet start to the trading week
- Range-bound price action
- Good for position building
- Australian economic data releases
Tokyo Session
7PM - 4AM ESTBest Pairs
Characteristics
- Asian market sentiment
- Bank of Japan interventions possible
- Good for JPY cross trades
- Often sets the tone for London
London Session
3AM - 12PM EST 👑 KINGBest Pairs
Characteristics
- Highest liquidity and volatility
- Major trends often start here
- European economic data releases
- Best session for day traders
- Breakouts of Asian ranges
New York Session
8AM - 5PM EST 💪 POWERBest Pairs
Characteristics
- Most impactful news releases (NFP, Fed)
- Continues London trends or reverses them
- High volatility during London overlap
- Afternoon can be quieter
- Friday afternoon - avoid (low volume)
Session Overlaps: The Sweet Spots
When two sessions are open simultaneously, liquidity and volatility spike. These are the best times to trade.
London/New York Overlap
8AM - 12PM ESTThe BEST 4 hours in forex trading. Highest volume, tightest spreads, strongest moves.
Why It's Special
- Both financial capitals active
- US economic data releases (8:30 AM)
- Institutional order flow peaks
- Major trends established
Tokyo/London Overlap
3AM - 4AM ESTBrief but important. Asian positions often close as European traders take over.
- Only 1 hour overlap
- Can see quick moves
- Good for JPY pairs
- Often breaks Asian ranges
Sydney/Tokyo Overlap
7PM - 2AM ESTCalmer overlap. Good for AUD and JPY pairs in ranging conditions.
- Lower volatility
- Tighter ranges
- Good for scalping
- AUD, NZD, JPY pairs
Best Times to Trade Each Pair
Match your currency pair to its most active session:
| Currency Pair | Best Session(s) | Best Time (EST) | Avg Daily Range |
|---|---|---|---|
| EUR/USD | London, NY Overlap | 8AM - 12PM | 70-90 pips |
| GBP/USD | London, NY Overlap | 8AM - 12PM | 100-130 pips |
| USD/JPY | Tokyo, NY | 7PM - 4AM, 8AM - 12PM | 60-80 pips |
| AUD/USD | Sydney, Tokyo | 5PM - 2AM | 60-80 pips |
| USD/CAD | New York | 8AM - 5PM | 60-90 pips |
| EUR/GBP | London | 3AM - 12PM | 40-60 pips |
| GBP/JPY | London, Tokyo/London | 3AM - 12PM | 120-180 pips |
When NOT to Trade
Some periods are notorious for bad trading conditions:
Friday Afternoon (after 2PM EST)
Volume drops as traders close positions for the weekend. Erratic, unpredictable moves. Spreads widen.
Sunday Open (5PM - 8PM EST)
Gaps from weekend news. Low liquidity. Wide spreads. Let the market settle first.
Major Holidays
Christmas, New Year, US holidays. Banks closed = no volume = no movement or random spikes.
During High-Impact News (Unless Intended)
NFP, Fed rate decisions, CPI releases. Extreme volatility, slippage, and gap risk. Trade only if you know what you're doing.
Between Sessions (Quiet Hours)
5PM - 7PM EST and 12PM - 3PM EST. Low volume, choppy price action, wider spreads.
💡 The Economic Calendar is Your Friend
Check the economic calendar daily. Know when high-impact news is scheduled. Either avoid trading during those times, or plan specific news-trading strategies. Never be caught off guard.
Key Takeaways
Four major sessions - Sydney, Tokyo, London, New York. Each has distinct characteristics.
London/NY overlap (8AM-12PM EST) is the best trading window - highest volume and volatility.
Match pairs to sessions - EUR/USD during London, AUD pairs during Sydney/Tokyo.
Avoid dead zones - Friday afternoon, Sunday open, between sessions, holidays.
Check economic calendar daily - Know when high-impact news is coming.