To see when markets overlap, let's have a look at the different forex trading times in each main financial center across the globe. (Times are displayed according to EST) So here are the times when two trading sessions overlap:
New York and London: from 8 am to 12 am (EST) Sydney and Tokyo: from 7 pm to 2 am London and Tokyo markets overlap one hour, from 3 am to 4 am.What does this mean? Trading EUR/USD, GBP/USD, or USD/CHF between 8 am and 12 am (EST) can lead to good results since markets for those currencies (European and American) are both active at the same time. This is when the largest volume of trades occurs, creating a greater chance of making significant profit in the forex market. Another good time to trade is from 1 am to 3 am EST. As you can see in the table above, at that time, European markets are waking up while Asian markets are closing, offering good trade opportunities. The same goes for the 7 pm to 10 pm EST time period, when the Asian and Australian markets overlap.Also, you have probably noticed that from 4 pm to 6 pm EST, there is no interesting overlap. That’s when the US markets close without overlapping any other large market. At those hours, the volume of trades is much lower, offering less great trade opportunities. You can thus see that while you can take advantage of a forex trading hours experience, some hours will allow for better opportunities than others.
*EST = UTC** - 5 hours **UTC= Coordinated Universal TimeWhile some hours of the day are busier than others, meaning that forex trading activity is greater at those hours, price fluctuation varies from day to day. As a general rule, some days of the week are busier than others. Whether in London, Tokyo, or the U.S., pip range movements for all 4 majors tend to be greater towards the middle of the week. Generally speaking, it is during Tuesday and Wednesday Forex Trading Sessions that we see the widest pip variation for all majors.