Global Trading Sessions

The forex market operates 24 hours a day, five days a week. But not all hours are equal. Understanding trading sessions helps you choose when to trade for optimal volatility and liquidity.

The Three Major Sessions

Session Overlaps

The most important time for traders is the London-New York overlap (13:00-17:00 GMT). During this period: - Trading volume is at its peak - Spreads are tightest - Price movements are most reliable - Breakouts are more likely to sustain

Best Times for Ethiopian Traders

Ethiopia is in the East Africa Time Zone (EAT, GMT+3). - London Session: 10:00 to 19:00 EAT - New York Session: 15:00 to 00:00 EAT - London-NY Overlap: 15:00 to 19:00 EAT - Asian Session: 03:00 to 12:00 EAT

The best window for most Ethiopian traders is 15:00-19:00 EAT, when both London and New York are active.

What to Trade in Each Session

Asian Session - Slow, range-bound movements - Good for breakout traders waiting for London open - Focus on AUD/USD, USD/JPY

London Session - Fast, directional movements - Best for trend trading and breakouts - Focus on EUR/USD, GBP/USD

New York Session - Momentum-driven after US data releases - Good for news trading - Focus on EUR/USD, USD/CAD, XAU/USD

Key Takeaway: Trade during high-liquidity periods whenever possible. The quality of your entries improves significantly when you trade during the right session. In the final lesson, we will look at who participates in the forex market.