New York Forex is the most liquid Forex trading session in the world. Liquidity is usually highest during the US session, which overlaps with the London session of the foreign exchange market.
Read on to learn how to trade these sessions effectively and which are the best currency pairs to trade during this trading session.
What is the New York trading session?
Trading in this active Forex trading session starts at 8:00 New York time and ends at 17:00 New York time. This session overlaps with London time, from 8:00 am to noon New York time, and from noon to midnight New York time. The foreign exchange market is highly liquid and active, with New York traders taking over from London traders.
New York dealers, which do not overlap with Tokyo, often send their books to their counterparts on the West Coast, New Zealand cities like Auckland or Wellington, or Sydney, Australia. During this period, the U.S. dollar and Canadian dollar appeared to be most actively traded.
If there is an overlap between the US session and the London session, the US session may trade similarly. Typically, the first half of the New York session is more volatile than the second half. In order to trade different levels of volatility, traders can use various methods.
how to trade?
- They say time is money. Therefore, timing is critical in the 24-hour Forex market. Successful trading depends on good timing. Sure, but when should we trade?
- In hot zones, 13.00 GMT to 16.00 GMT is considered the best time. How powerful are these times? During these hours, volume and volatility peaked! There are many active market participants during this period, currencies are moving rapidly and the most important economic news is being released.
- Volatility refers to the rate at which the price of a particular currency pair changes; volume refers to the number of lots bought and sold in one or more currency pairs.
- Volatility and volume combine like gasoline at power time. But this is the good part! Furthermore, they can cause significant movements in almost all currency pairs.
Best Forex Pairs To Trade During New York Trading Hours
- It is best to focus on trading your major FX pairs such as EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY and USD/USD/USDCHF during the New York session. These pairs will be the most liquid when the US session overlaps with the European session.
- Every trading session in the foreign exchange market has its own characteristics. For example, the London FOREX session follows the New York session, followed by the Asian session.
- Due to liquidity, spreads are reduced, reducing transaction costs. As a result, most Forex traders will likely benefit from increased volatility and liquidity during the overlapping period of the New York session.
Golden Cross Trading Strategy
The Golden Cross is a candlestick chart pattern that gives a bullish signal. When the short-term moving average is above the long-term moving average, it’s called a crossover.
What is the Golden Cross?
A golden cross is a bullish pattern. It is formed by the crossing of a short-term moving average (eg, 9 days) and a long-term moving average (eg, 200 days).
When the short term moving average is above the longer one, we have a golden cross. It predicts a bullish market because longer-term indicators are more effective.
How to identify the Golden Cross?
The Golden Cross has three stages that traders must recognize. They are as follows:
1. First, a downtrend occurs at the short-term moving average, crossing below the long-term trend before the moving average crosses.
2. A new trend occurs in the second stage, also known as an intersection, where the short-term moving average exceeds the long-term moving average.
3. Finally, the uptrend must continue and the price is supported by the short-term downtrend moving average.
The reciprocal of a golden cross is a death cross, which occurs when the short-term MA falls below the longer-term MA.
How to apply the Golden Cross trading strategy?
- The 50-period (short-term) and 200-period (long-term) moving averages are the most commonly used moving averages for the Golden Cross. Period means a certain period of time. Therefore, longer durations usually lead to larger breakouts.
- A weekly 50-day moving average crossing over any forex pair For example, a cross above the 200-day moving average is a strong bullish signal.
- Intraday golden cross breakouts are typically traded by day traders or day traders using shorter periods such as 9-period and 15-period moving averages. You can choose a time period from 1 minute to weekly or monthly. Just as longer periods produce stronger breakouts, so do chart periods.
- The longer the chart time frame, the sharper and more persistent the golden cross breakout will be.
- As with any technical indicator , the possibility of using a certain forex pair or other asset does not guarantee that it will work on another asset.
- The downside of the Golden Cross is as a lagging indicator. Historical data does not reflect the predictive power of predicting future price movements. Therefore, it is usually combined with other technical indicators.
- Traders can use the golden cross breakout signal and a range of momentum oscillators such as Stochastic, RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) to determine if a bullish trend is overbought or oversold. This helps identify precise entry and exit locations.
- Golden crosses are useful for both long-term and short-term traders, depending on how moving averages are used. As mentioned earlier, it is best to combine the golden cross with other technical analysis to improve your trading skills. Since the pattern is bullish , it will only generate a buy signal.
- The Golden Cross is a powerful bullish pattern that provides entry and exit options. The Golden Cross should be used in combination with other technical indicators to maximize its effectiveness.