The forex market is open 24 hours a day, five days a week, and is divided into four major trading sessions: the Asian session, the European session, the North American session, and the Pacific session. Each session has its own unique characteristics and trading opportunities. In this article, we will focus on the Asian session and explain when it starts and ends in GMT.
The Asian session is the first major forex trading session to open, and it begins at 00:00 GMT (Greenwich Mean Time), also known as the London open. This session starts when the Sydney market closes and overlaps with the European session, which is the busiest trading session. The Asian session is also known as the Tokyo session, as Tokyo is the financial capital of Asia and the largest forex trading center in the region.
The Asian session is characterized by low volatility and liquidity compared to the European and North American sessions. This is because the Asian session is the least active trading session, with only a few financial centers open during this time. However, this does not mean that there are no trading opportunities during the Asian session. In fact, some traders prefer to trade during this session due to its unique characteristics.
One of the advantages of trading during the Asian session is that the market tends to be more predictable and less volatile compared to other sessions. This is because there are fewer economic events and news releases during this time, which means that there are fewer surprises that can move the market. Additionally, the Asian session is known for its range-bound trading, where prices tend to move within a narrow range, making it easier for traders to identify key support and resistance levels.
Another advantage of trading during the Asian session is that it offers traders an opportunity to trade currencies that are correlated with the Asian economies. For example, the Japanese yen (JPY) is a popular currency to trade during the Asian session, as it is heavily influenced by the Japanese economy. Other currencies that are often traded during this session include the Australian dollar (AUD), the New Zealand dollar (NZD), and the Chinese yuan (CNY).
When it comes to trading strategies, there are several that are commonly used during the Asian session. One popular strategy is the range trading strategy, which involves identifying key support and resistance levels and trading within the range. Another strategy is the breakout strategy, which involves identifying key levels where prices are likely to break out of the range and trading in the direction of the breakout.
In summary, the Asian session in forex GMT starts at 00:00 GMT and ends at 09:00 GMT. Although it is the least active trading session, it offers traders unique advantages such as lower volatility, range-bound trading, and an opportunity to trade currencies that are correlated with the Asian economies. Traders who are looking for trading opportunities during the Asian session should consider using strategies such as range trading and breakout trading.
