Who this is for — When the market «changes character» between morning and afternoon. Trading without knowing your session means applying the same strategy in different liquidity contexts.
Even on near-24/7 markets (Forex, crypto), trading intensity is not constant. As financial centres open, liquidity and volatility rise or fall. Trading at 03:00 and 15:00 (local time) is not the same market context.
In plain terms — Like a venue: quiet at night, busier at lunch and dinner with prices moving faster.
Three main sessions
Approximate UTC hours:
1. Asian session (Tokyo / Sydney)
- Hours: ~00:00–09:00 UTC
- Traits: Lower volatility, tight ranges; spread sometimes wider.
- For: Mean-reversion, light scalping.
2. European session (London)
- Hours: ~08:00–16:30 UTC
- Traits: High liquidity, rising volatility; intraday trends often form here.
- For: Breakouts, trend-following.
3. American session (New York)
- Hours: ~13:30–20:00 UTC
- Traits: Heavy volume; may confirm or reverse the European trend; peaks with macro data and equity open (~14:30 UTC).
London–New York overlap
13:30–16:30 UTC: both sessions open. Maximum daily liquidity and volatility — more opportunity and more risk of fast spikes.
Typical mistake — Using the same size and stops as in Asia during the overlap without adjusting the plan.
Example — Profitable position at 13:00 UTC: Wall Street open and macro data can reverse the move in minutes. Decide if the target is already met or event risk is acceptable.
Summary card
- What: Three blocks (Asia, Europe, America) with different liquidity profiles.
- Overlap: 13:30–16:30 UTC — peak activity.
- Rule: Adapt strategy and size to the session, not the other way around.
Bronze path — Market module. Next: Market maker. Index: Bronze Path.