Home Courses Course-01 16 – Trading the New York Session

16 – Trading the New York Session

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After five hours of rigorous trading during the London session, the New York session prepares to open. The New York session begins at 8:00 AM EST when the Europeans are coming back from their lunch break.

Just how the Tokyo session is known as the Asian session and the London session is known as the European session; the New York session is also referred to as the North American session.

As far as pip movement is concerned, the New York session stands after the London session. In other words, the pip movement in currency pairs is less in the North American session when compared to the European session. However, it does beat the Asian session.

Below is the table which shows the pip movement in different major currency pairs.

Currency pair Pair
EUR/USD 77
USD/JPY 34
AUD/USD 68
GBP/USD 68
NZD/USD 62
USD/CHF 56
USD/CAD 67
EUR/GBP 36
EUR/JPY 72
GBP/JPY 77
AUD/JPY 71

 

From the above the table, we can ascertain that the average pip movement during this session is 62 pips. Also, the most moving pairs are the USD pairs and some of the JPY pairs.

Tips one must consider when trading during the New York session

As mentioned, when the New York session opens, it overlaps with the London session. Hence, you can expect high volatility during this period of time.

The economic news typically kicks in during the beginning of the New York session. And, according to statistics, about 85% of the trades involve the US dollar. So, if any news related to the U.S economy comes in, it tends to move the markets all alone.

When the European markets begin to close their business, the volatility slowly starts to diminish. This usually happens during the U.S session’s lunch hours.

The volume in trading becomes very feeble on Friday afternoons because the weekend sets off for the Asians and the Europeans.

Furthermore, on Fridays, there is a high probability for the markets to reverse its directions, as U.S traders close their positions to stay away from the news events during the weekend.

Pairs you must have on your watch list during the New York session

The volatility of the market during the overlap of the European session and the North American session is very high. So, you can literally trade any pair of your choice. However, it is recommended to stick to the major and minor pairs and avoid the weird and exotic ones.

News related to the U.S data can dramatically move the USD. Hence, news traders can keep a close watch on the US dollar to catch these drastic moves.

If you’re getting started with trading in the Forex market, then the North American session can be the right session, to begin with, as its volatility is not as high as the London session and is not as low as the Asian session.

Therefore, this completes the lesson in the New York session.

Have you entirely understood this lesson? Well, test it by taking up the quiz given below.

The New York session overlaps with the _______.

Correct! Wrong!

When does the North American session begin?

Correct! Wrong!

The average pip movement during the New York session is ____.

Correct! Wrong!

Choose the correct order (descending) in terms of pip movement.

Correct! Wrong!

Which day of the week there is very low volatility in the markets?

Correct! Wrong!

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