When to trade the Asian session? As a beginner, you may be tempted to avoid it. However, this time of day has several benefits. Firstly, it brings additional pips. Trading during the Asian session allows you to take advantage of different stages of support and resistance, which can be combined with indicators to get a more accurate reading of the market. Also, it allows you to study the risks and rewards of your trades in depth.
The Asian session is also known as the most difficult session for forex traders, because it features low volumes and high spreads. That s why it s so important to know which forex pairs to trade during the Asian session. You ll be able to reap the benefits of the lowest spreads by using the JPY or AUD pair, as these are popular in Asia. When you re trading the majors, you ll likely see high spreads and low volume. While major pairs will likely have low volume, the JPY and AUD pair will have lower spreads and higher volume, making them the most appropriate choices for trading during the Asian session.
The Tokyo session begins at 2200 GMT, which is actually New Zealand s financial market opening. The session lasts until 0800hrs GMT, the closing time of the Tokyo market. The Asian session usually experiences low liquidity and high volatility, so there are fewer opportunities for high-risk trades. The market is generally quiet during this period, but when news about China comes in, there is more volatility. This could impact the price of the AUD/JPY pair.
Traders should choose currency pairs that are suitable for the Asian session. While there are many currencies to trade, the Japanese Yen, Australian dollar, Singapore dollar, and New Zealand dollar are the most popular. If you re not a trader, you should avoid trading during the Asian session. Traders should also make a mental note of the time zone difference. This is crucial because it will determine whether you make money or lose it.
The best time to trade the Asian session will differ based on your trading style. If you re a scalper, the timing of your trades will be crucial. A lower liquidity session will require you to pay higher transaction costs, which will cut into your potential profit. Alternatively, if you re a swing trader, the time of day is not as important. As a position trader, you ll be trading for longer periods and a larger profit target.
There are three main overlaps in the Asian session. The first overlap occurs from 8 a.m. to noon. Most traders trade the euro and the U.S. dollar, which account for 90% of currency trades. As a result, the dollar s movement is very influential throughout the world. As a result, you ll get more trades during this time frame. In the second overlap, the Sydney and Singapore exchanges overlap, but the volume is less than in the London/New York window.