Summer Period (April to October)
The Asian session starts from 6 PM to 3 PM Eastern Daylight Time (EDT).
The London session starts from 3 PM to 12 AM Eastern Daylight Time (EDT).
The New York session starts from, 8 AM to 5 PM Eastern Daylight Time (EDT).
Winter Period (October to April)
The Asian session starts from 6 PM to 3 PM Eastern Standard Time (EST).
The London session starts from 3 PM to 12 AM Eastern Standard Time (EST).
The New York session starts from, 8 AM to 5 PM Eastern Standard Time (EST).
Everything's all pushed back by an hour during this winter period, so please bear this in mind.
If all this may seem confusing, don't worry, there's a very simple solution to this.
Just Google Forex market hours, and there are different types of Forex session that you can look at, and just apply to your relevant time zone.
What is the best time to trade Forex?
This question is mainly directed for day traders.
If you're like a swing trader or position trader, or you trade the longer timeframe, it doesn't really matter when is the best time to trade Forex because it's pretty much irrelevant to you.
But if you are day trading, you're a short-term trader, then it matters to know which is the best time to trade Forex.
For traders who want to trade the volatility, then the London session is the best.
Because you have the greatest number of transaction and volatility during the market hour.
London and New York Overlap Session
To be even more precise, the London and New York overlap is the best time to trade.
The London and New York session is open at the same time, this is the best time to be trading.
Here’s what I mean:
As you can see, the historical hourly trade activity increases during the London session up until it overlaps with the New York session.
This means if you're a day trader, and you're trading breakouts and trends, London session is the time that you must trade because this is where volatility is the most.
If you want to trade breakouts during the Asian session, there's really not much meat to eat if you want to trade the trend.
What is the best day to trade Forex?
Just like the best time to trade Forex within certain hours, there are certain best days to trade Forex as well.
Generally, it's Tuesday, Wednesday, and Thursday.
This day chart has been provided by Babypips.
In EUR/USD, you can see that the range of this pair during Sunday is 69 pips. Monday 109. Tuesday 142. Wednesday 136. Thursday 145. Friday 144.
You can see that across all the different currency pairs.
You tend to experience increased volatility during Tuesday, Wednesday, and Thursday.
Some of the reason could be because that on Monday, traders are still hanging over from the weekend, so they are not too active. This is why volatility is quite tame.
Similarly, for Friday, people want to pack up for the weekend, so they don't really want activity trade that much.
That kind of explains why volatility on Friday isn't that too high as well.