Topic: What is the importance of trading sessions? (Read 124 times)
While trading sessions can give you a good edge by helping you align your trades with high market activity, it’s not the only factor to consider. For example, you’ll want to keep an eye on things like major economic news releases, as they can heavily impact the market regardless of the session. Also, each market has its own nuances—so if you’re in crypto, the session times might not have as much of an effect since it’s 24/7. Sessions are just one piece of the puzzle for building a trading strategy, but definitely a useful one to help guide when you might see increased opportunities.
I would like someone to explain the role of the different trading sessions to me, as I have learned that they should not be overlooked
Are you forex trader?I could vividly remembered that most times this questions are most emanating from those who are doing forex and its hard for a crypto trader to jump into forex market, while it's very much easier for a forex trader to jump into cryptocurrency trade and succeed, the important thing should if they understand how the bitcoin cycle works (halving) whoever forex traders that understand this can as well make profits while trading on cryptocurrency as I think forex is much more very difficult to understand and follow up due to much learning and understanding the various currencies and the suitable days to trade them.
Crypto exchanges is open 24-hour so I think there's no such thing as trading season in crypto except maybe an active hours, like basically in europe and north america it has different active hours compared to Asia such as japan and korea.
so you might see some active price movement around different active hours, the people who trade know that at such hour they can make some profit due to market movement.
so if you try to trade crypto, just look at active hours, you might see some interesting price action where you can either open a long position or short position accordingly.
I've seen occasional price dip at that hour and buying at that time just really give you a good entry price that could give you big profits.
this article gives a good insight https://www.coindesk.com/learn/is-there-a-best-time-to-trade-crypto-heres-what-the-data-says/
so you might see some active price movement around different active hours, the people who trade know that at such hour they can make some profit due to market movement.
so if you try to trade crypto, just look at active hours, you might see some interesting price action where you can either open a long position or short position accordingly.
I've seen occasional price dip at that hour and buying at that time just really give you a good entry price that could give you big profits.
this article gives a good insight https://www.coindesk.com/learn/is-there-a-best-time-to-trade-crypto-heres-what-the-data-says/
However, I have another question: should I base my decision solely on the importance of the sessions?
No, there are a lot of other factors at play apart from the sessions as Oshosondy already explained. The sessions may mostly help you know when the market is hyperactive and when it's sleeping or boring, especially with financial instruments such as stocks, forex etc 
That should be in forex or stock trading and not crypto trading. Trading is opened 24 hours in crypto trading unlike those traditional markets.
Forex trading sessions are London, New York, Tokyo, Sydney. Know the forex market hours and the best time to trade the forex market.
None of the exchanges are open 24 hours but their overlaps create a 24-hour market on weekdays. They are 7 a.m. to 4 p.m. (the London market), 1 p.m. to 10 p.m. (the New York market), 9 p.m. to 6 a.m. (the Sydney market), and 12 a.m. to 9 a.m. (the Tokyo market) in Coordinated Universal Time (UTC).
While you are technically right about that and the price should not be moving based on timezone, there are some data backing up that when America is mainly asleep, the price doesn't change all that much, and when they are awake, all the big moves happens. I am not American so I am not here to support some American manifest destiny type of new thing they should be devouring, I dislike this data too, but if it's true then we can say if you are trading during same time as New York then you could see more volatility and more up and downs, compared to when it's 5 am in the morning at New York (and late for anywhere else in USA).Forex trading sessions are London, New York, Tokyo, Sydney. Know the forex market hours and the best time to trade the forex market.
None of the exchanges are open 24 hours but their overlaps create a 24-hour market on weekdays. They are 7 a.m. to 4 p.m. (the London market), 1 p.m. to 10 p.m. (the New York market), 9 p.m. to 6 a.m. (the Sydney market), and 12 a.m. to 9 a.m. (the Tokyo market) in Coordinated Universal Time (UTC).
This doesn't mean crypto is closed, it's a 24 hour open thing and we can all trade at any time, including weekends, there is no time when it opens or closes, it just means that there are more movements in crypto during a certain time of the day and there are less moves based on the situation.
Your trading session depends on how you open your trading position.
If you use 5-minute chart for trading, you are trading with very short time and never should leave your trading position opens more than 1 hour like 5 minutes x 14 with 14 is most common figure used in default setting of many technical indicator.
You can apply the same rule with 15-minute, 30-minute, 1-hour, 4-hour chart, then 1-day chart too.
Remember that trading is never as investment so it's not holding. With trading, you have to open and close your position, to firstly protect your trading capital. You never should hold your position and think it is holding in investment.
This is not trading session. Read what other people posted because they got it right. Trading session does not deal with candle sticks time frame and opened position. It is about knowing when the market open and when it closes daily. Some traders use it in their analysis.If you use 5-minute chart for trading, you are trading with very short time and never should leave your trading position opens more than 1 hour like 5 minutes x 14 with 14 is most common figure used in default setting of many technical indicator.
You can apply the same rule with 15-minute, 30-minute, 1-hour, 4-hour chart, then 1-day chart too.
Remember that trading is never as investment so it's not holding. With trading, you have to open and close your position, to firstly protect your trading capital. You never should hold your position and think it is holding in investment.
However, I have another question: should I base my decision solely on the importance of the sessions?
You can not base your decision solely on trading session, you need to make use of technical and fundamental analyses also. They are both very important in trading. In forex fundamental analysis like news is very important. When you understand trading sessions as a trader, you will be able to know when to trade and capitalize on increased market activity, high liquidity and volatility, which can also translate to quick trades and possibly profits.
Under certain conditions, the market is of low activity and very slow. Trust me, trying to trading during that time is so boring
So when you know about trade sessions, you can avoid such times, however they don't necessarily apply to crypto markets.
Under certain conditions, the market is of low activity and very slow. Trust me, trying to trading during that time is so boring
So when you know about trade sessions, you can avoid such times, however they don't necessarily apply to crypto markets.
Thank you very much for your response. Normally, I should send you merits, but I don't have any myself.
However, I have another question: should I base my decision solely on the importance of the sessions?
I would like someone to explain the role of the different trading sessions to me, as I have learned that they should not be overlooked
Your trading session depends on how you open your trading position.If you use 5-minute chart for trading, you are trading with very short time and never should leave your trading position opens more than 1 hour like 5 minutes x 14 with 14 is most common figure used in default setting of many technical indicator.
You can apply the same rule with 15-minute, 30-minute, 1-hour, 4-hour chart, then 1-day chart too.
Remember that trading is never as investment so it's not holding. With trading, you have to open and close your position, to firstly protect your trading capital. You never should hold your position and think it is holding in investment.
When you understand trading sessions as a trader, you will be able to know when to trade and capitalize on increased market activity, high liquidity and volatility, which can also translate to quick trades and possibly profits.
Under certain conditions, the market is of low activity and very slow. Trust me, trying to trading during that time is so boring
So when you know about trade sessions, you can avoid such times, however they don't necessarily apply to crypto markets.
Under certain conditions, the market is of low activity and very slow. Trust me, trying to trading during that time is so boring
So when you know about trade sessions, you can avoid such times, however they don't necessarily apply to crypto markets.
That should be in forex or stock trading and not crypto trading. Trading is opened 24 hours in crypto trading unlike those traditional markets.
(....)
This makes sense since trading cryptocurrency is 24/7, trading sessions really not a big deal when you trade cryptocurrencies.(....)
But there are still a lot of important times when you do trading, for example, the daily candle closing time or daily candle opening time, for example, US/UTC time/Asian time, this is more on different timezones where sometimes you can see huge volatility between these periods.
I would like someone to explain the role of the different trading sessions to me, as I have learned that they should not be overlooked
Trading sessions are for the purpose of helping traders understand times in the day where there will be more trading activity. So based on this it means that any crypto trader in the market will not be able to trade every time whenever they feel like. Crypto trading makes trading sessions irrelevant because in Crypto trading you could decide to trade at any time and moment you you want and see a setup to enter. So to motivate and increase your interest in trading if you want to be able to trade at any time and not consign yourself with trading sessions then crypto trading is definitely what is for you. 
That should be in forex or stock trading and not crypto trading. Trading is opened 24 hours in crypto trading unlike those traditional markets.
Forex trading sessions are London, New York, Tokyo, Sydney. Know the forex market hours and the best time to trade the forex market.
None of the exchanges are open 24 hours but their overlaps create a 24-hour market on weekdays. They are 7 a.m. to 4 p.m. (the London market), 1 p.m. to 10 p.m. (the New York market), 9 p.m. to 6 a.m. (the Sydney market), and 12 a.m. to 9 a.m. (the Tokyo market) in Coordinated Universal Time (UTC).
I got some information about it from these sites which you can click on to understand about it:
https://www.babypips.com/learn/forex/forex-trading-sessions
https://www.investopedia.com/terms/forex/f/forex-market-trading-hours.asp#:~:text=None%20of%20the%20exchanges%20are,Coordinated%20Universal%20Time%20(UTC).
Forex trading sessions are London, New York, Tokyo, Sydney. Know the forex market hours and the best time to trade the forex market.
None of the exchanges are open 24 hours but their overlaps create a 24-hour market on weekdays. They are 7 a.m. to 4 p.m. (the London market), 1 p.m. to 10 p.m. (the New York market), 9 p.m. to 6 a.m. (the Sydney market), and 12 a.m. to 9 a.m. (the Tokyo market) in Coordinated Universal Time (UTC).
I got some information about it from these sites which you can click on to understand about it:
https://www.babypips.com/learn/forex/forex-trading-sessions
https://www.investopedia.com/terms/forex/f/forex-market-trading-hours.asp#:~:text=None%20of%20the%20exchanges%20are,Coordinated%20Universal%20Time%20(UTC).
I would like someone to explain the role of the different trading sessions to me, as I have learned that they should not be overlooked
Jump to: