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Chapter 4, Part V. It’s double time – trading sessions overlapping.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Apr 4, 2011.

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  1. Administrator

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    Part V. It’s double time – trading sessions overlapping [​IMG]
    Commander in Pips: Maybe you have noted already, we’ve talked about the fact that liquidity increases during crosses of different trading sessions. So, I offer to talk about this. There are two major overlaps here – “Tokyo-London” and “London-New York”. As you will see, the reason for that is not only the liquidity growth.

    Pipruit: And what about “New York-Tokyo, so to say, closes the loop?​

    [​IMG]

    Commander in Pips: Hm, if you take a look at our trading sessions diagram in the first part of this chapter, then you’ll see that the New York session barely crosses with Tokyo. Even if it does, this overlapping has an absolutely insignificant effect.

    So, let’s start from the Tokyo-London crossing.

    Tokyo-London

    - This is a minor crossing of trading sessions in sense of significance. One of the reasons for that is the tight period of crossing of these trading sessions. Usually overlapping lasts for just 2 hours in summer time and only 1 hour in winter. We should understand also that this time is also extremely approximate. Would you start an active business decision, say, in 17:00-18:00 (Japan) or in 8:00 in the morning (London). Generally not. So, that is happening on the market. When the Asian region has almost finished its trading day, Europe is only ready to begin it.

    - That’s why you don’t see much activity during this period. Liquidity is not also not very impressive. From the other side, this time is quite suitable for developing a trading plan for the London and New York trading sessions.
     
    #1 Administrator, Apr 4, 2011
    Lasted edited by : Feb 7, 2016
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