We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • So has everyone stopped watching the 2s10s curve? The 10YR less 2YR US Treasury yield spread has retraced over 38% the steepening since its late-August bottom. Likely reflects shift in Fed expectations from accommodative to neutral as well as resurfacing trade war uncertainty. https://t.co/SHNvbYpJeq
  • 🇺🇸 USD Baker Hughes U.S. Rig Count (NOV 22), Actual: 803 Expected: 797 Previous: 806 https://www.dailyfx.com/economic-calendar#2019-11-22
  • #Gold prices are trading just above a critical long-term support zone and the focus is on a break of this week’s range for guidance. Get your $XAUUSD technical analysis from @MBForex here: https://t.co/hmjBTA3e00 $gld https://t.co/rjWGJGA6Ty
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.61%, while traders in France 40 are at opposite extremes with 81.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fZ3KSsRIvM
  • Heads Up:🇺🇸 USD Baker Hughes U.S. Rig Count (NOV 22) due at 18:00 GMT (15min), Actual: N/A Expected: 797 Previous: 806 https://www.dailyfx.com/economic-calendar#2019-11-22
  • Huawei rebuts FCC's decision on banning it's products. States there is no basis in law and no evidence provided
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Gold: -0.06% Silver: -0.36% Oil - US Crude: -1.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/SYlt0FX1mG
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.08% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.02% 🇪🇺EUR: -0.27% 🇨🇭CHF: -0.38% 🇬🇧GBP: -0.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/WrqLvTMMpp
  • @JohnKicklighter https://t.co/dxs2U1Wrnp
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.24% France 40: 0.15% Germany 30: 0.11% US 500: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PXw3ELzXmv
The New York Session: Forex Trading Tips

The New York Session: Forex Trading Tips

2019-03-05 16:49:00
David Bradfield, Markets Writer
Share:

The New York forex session is one of the most liquid forex trading sessions. When the US session overlaps with the London forex market session it is considered to be the most liquid period of the day.

What time does the New York Forex Session Open?

The New York forex session opens at 8:00 AM ET and closes at 5:00 PM ET. The ‘overlap’ occurs when the US Forex session overlaps with the London forex market session. The London Forex market session opens at 3:00 AM ET and closes at 12:00 PM ET, so the overlap occurs between 8:00 AM ET and 12:00 PM ET.

During this overlap, the US session could trade very much like the London session.

Forex market hours showing US Session and London Session overlap

The beginning of the New York session is normally more volatile than later in the day. There are different methods traders can use to trade differing levels of volatility.

New York Breakout Strategy: Trading the ‘Overlap’

The ‘overlap’ is when the London and US forex sessions literally overlap each other. These are the two largest market centers in the world, and during this four-hour period – large and fast moves can be seen during the overlap as a large amount of liquidity enters the market.

The image below shows how during the overlap (between the green lines) of the two biggest markets, average hourly moves in the EUR/USD reach highs.

Average hourly moves by hour of day in EUR/USD. US Forex market session

To trade the overlap, traders can use a break-out strategy which takes advantage of the increased volatility seen during the overlap.

An example of the New York breakout strategy, using the EUR/USD, is shown below:

The EUR/USD formed a triangle-pattern which, during the overlap, the price of the EUR/USD broke out of. Once a trader has properly addressed risk management, the entry into the trade can be staged with any relevant mechanism of support and/or resistance.

EUR/USD New York Breakout Strategy

Trading the later part of the New York session

As London closes for the day, volatility will have a tendency to decrease drastically. From the same chart we looked at above, that showed the average hourly moves by hour of day in EUR/USD, we can see a markedly different tone in the average hourly move for the later portion of the US forex trading session:

Average hourly moves by hour of day in EUR/USD

As you can see, the later part of the New York session displays less volatility. Since the average hourly moves are smaller in the later stages of the New York session traders could use a different trading strategy, like a range trading strategy.

Using a range trading strategy trader take advantage of support and resistance levels. The chart below shows an example of a range trading strategy. When the price moves the upper bound (red line) traders will look to short the currency pair. When the price moves the lower bound (the green line) traders will look to buy the currency pair.

The logic behind using a range trading strategy is that as the volatility lowers, the levels of support and resistance may be harder to break and will therefore more likely hold- benefiting the range bound trading strategy.

Range bound trading strategy

Best FX pairs to trade during the New York session

The best forex pairs to trade during the New York session would be your majors, like EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY, and USD/CHF. These pairs will be the most liquid during the US session, especially the EUR/USD during the overlap.

Each forex trading session has unique characteristics, the London forex trading session follows the New York session which is then followed by the Asia trading session.

The liquidity will lead to reduced spreads and therefore, lower trading costs. During the overlap, the combination of increased volatility and increased liquidity will be beneficial to most forex traders.

Take your forex trading to the next level with our guides and resources

If you’re new to forex trading, our New to Forex trading guide covers all the basics to help you on your journey. We also recommend reading our guide to the traits of successful traders, which comprises the data of over 30 million live trades analyzed by our research team.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.