There are 3 major trading sessions in the world where most of the traders are using. They are, Asian(Tokyo) session, London session and New York session. Depending on the forex pair, the effect of the trading session will be highly visible. Once the big banks and institutions start trading for the day, the volatility of the market arises, therefore, you can see there is high volatility during the London and New York sessions compared to Tokyo (Asian) session.
It is advisable to trade when there is some volatility in the market. Because, less volatile means, there are no much trades happening, again that means no interest is shown by the big players. That means the current market undergoes either one of:
1. side ways (bouncing back and forth from two price levels) or
2. price is reaching toward a key level.
Once the price enters to a zone where most of the traders are interested of, then the volatility will go up (as the traders are starting to trade for the day), and we also can use our own strategies to analyze the market for a better trade entry.

Leave a comment