I’m currently into programming EA’s with various results. At different websites one can read that there’s more profit make if you trade when the pairs are most active.
So for example, when trading the EUR/GBP, the most active hours have to be when the London session is active right?
But what about the EUR/USD? My thought of EUR/USD is that it is THE forex pair, so I guess it’s being traded in the London session, but maybe in the NY session aswell? What about the Asian session? I mean, that pair (and others) has gotta belong to one of the most popular pairs to trade, so my guess is that it’s being trade in the Asian session aswell, but maybe not as much as in the London/NY session? But maybe the activity consists of other non-forex instruments like other countries buying/selling, which maybe is being done mostly by european/american countries…? As you can tell, i’m kinda lost here :D.
The above question can be adressed to other paris like EUR/JPY or USD/JPY aswell.
As for the other pairs you asked about, you might find these charts to be useful. Two of them — EUR/USD and USD/JPY — relate to your question.
“Active hours” in the forex market can mean —
• hours during which large price moves occur
• hours during which total transactional volume is high
• hours during which tick-volume is high
— and these three metrics are closely related. Generally, large price moves are accompanied by high transactional volume. And transactional volume (pure dollar-volume of trading), which we can’t measure directly, is closely correlated with tick-volume.
The charts linked to above are showing average price moves over the 24-hour trading day. Note that New York (EDT) times are shown on the horizontal axes. To convert those times to your CEST time zone, add 6 hours. So, 10:00 New York time (EDT) would be 16:00 in Sweden (CEST), and so forth.
Also, note the colored areas in each chart. Those are [I][B]roughly[/B][/I] the 3 major trading sessions (London-green, New York-blue, and Tokyo-orange).
But, notice that [B]the 4-hour overlap between the London and New York sessions[/B] (08:00-12:00 New York time, 13:00-17:00 London time) is not apparent in these charts.
And that’s [B]the peak period[/B] in 3 of the 4 charts.
