Friday, August 2, 2013

Understand The Forex Market Hours For Profitable Breakout Trading Strategies

Understanding the Forex market hours is a key requirement to implementing a profitable Forex trading strategy. The Foreign Exchange markets are often described as providing traders with the ability to trader around the clock with the markets being open twenty four hours per day. While this does indeed provide the opportunity to trade at any time of the day or night it is important for traders to take account of the hours when they look to trade. This is especially important for new traders first starting out as knowing the right time to trade is an important part of trading the markets successfully. Although the Forex markets are open twenty four hours per day, they are in fact divided into a number of distinct sessions. Understanding the market dynamics of each of these sessions can help to dictate the level of performance that you will achieve.

There are three main sessions that you need to be aware of when trading which define the Forex market hours; the Tokyo session, the London session and the New York session. Each of these trading sessions is identified by a trading window which represents the time when the markets are open in each region. Each session has its own unique characteristics and dynamics that define the market action during the session.

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