Trading Sessions in Forex Trading
Forex trading operates 24 hours a day, five days a week. The reason for this is simple: as there is no central exchange, forex trading can take place anywhere, anytime. This creates a market that is active around the clock, with prices changing constantly.
Sessions are specific times and/or days that a trader would like to trade at. e.g. 06:23-12:32, 03:00-09:00.
The forex market can be broken down into four major trading sessions:
- The London session.
- The New York session.
- The Sydney session
- The Tokyo session.
These are the trading ‘windows’ when the majority of activity takes place, and the markets are most liquid.
Using a Session Filter
A session filter is a tool that allows traders to analyze the market activity and execute trades during certain hours or days. It can be particularly useful for traders who want to focus on specific sessions due to their trading strategy or time zone.
In TradingView to Anywhere, traders can automate their strategies and indicators to execute trades in specific sessions without the need for additional session indicators or tools.
This is done by the use of a Session (S) parameter that is passed in the alert message. This parameter allows traders to set multiple sessions or days they would like to execute their trades.
The first day of the week is Monday specified as 1, while the last day is Sunday specified as 7. The time zone in use is as per your broker’s server time.
For example, to execute trades between 9 AM and 10 AM we would use BUY EURUSD Q=0.01 S=09:00-10:00.
Session Filter Examples
-
Single Trading Session
BUY USDJPY Q=0.5 S=06:23-12:32 - This will execute trades daily between 6:23 AM and 12:30 PM. -
Multiple Trading Sessions in a day
BUY USDJPY Q=0.5 S=06:23-12:32,18:00-23:00 - This will execute trades daily within the two specified sessions. That is between 6:23 AM and 12:30 PM and between 6:00 PM and 11:00 PM. -
Specific Trading Days
BUY USDJPY Q=0.5 S=3=06:23-12:32 - This will execute trades on Wednesday as it is the 3rd day of the week, between 6:23 AM and 12:32 PM. -
Multiple Trading Sessions on Multiple Days.
BUY USDJPY Q=0.5 s=3=06:23-12:32,3=18:00-23:00,5=06:23-12:32,5=18:00-23:00 - This will execute trades every Wednesday and Friday between 6:23 AM and 12:32 PM and between 6:00 PM and 11:00 PM.
Please note for multiple sessions on multiple days, the day must be included in each session (as in example 4) otherwise, the alert will be executed daily during that session.
By incorporating a session filter into their trading strategy, traders can better understand the market dynamics during different trading sessions. This can help them make more informed decisions and potentially improve their trading performance.
Remember, successful trading involves more than just understanding the market hours. It also requires a solid trading strategy, risk management, and continuous learning. So, keep exploring, keep learning, and keep trading!
Note: Trading involves risk. Always do your research before making any trading decisions.