The Best Time To Trade The New York Session In Forex Market
Welcome to today’s lesson, where we’ll explore a critical topic in forex trading, “the best time to trade the New York session.”
The New York session is a prime battleground for professional retail traders and major financial institutions. It’s one of the most active periods in the forex market, where high liquidity and strong price movements present countless opportunities for traders.
As European traders return from their lunch breaks, the U.S. session kicks off at 8:00 AM EST (1:00 PM UTC). While there are other trading hubs across North America, such as Toronto and Chicago, our main focus remains on New York.
New York Session Overview
The New York session opens at 8:00 AM EST (1:00 PM UTC) and closes at 5:00 PM EST (10:00 PM UTC). This session hosts some of the largest market participants, making it a time of intense volatility and trading activity. In fact, around 17% of all forex transactions occur during this session, which is often referred to as the “North American session.”
The New York trading session overlap with the London session from 8:00 AM to 12:00 PM EST (1:00 PM to 5:00 PM UTC), a period known for its high liquidity and market-moving potential.
The New York session often continues trends established during the London session, and the overlap period is especially powerful due to the combined forces of the two major financial markets.
Breakdown of the New York Session
The New York session can be divided into three parts:
- Morning Session: 8:00 AM – 12:00 PM EST (1:00 PM – 5:00 PM UTC)
- Lunch Hour: 12:00 PM – 1:00 PM EST (5:00 PM – 6:00 PM UTC)
- Afternoon Session: 1:00 PM – 4:00 PM EST (6:00 PM – 9:00 PM UTC)
The morning session is where most of the action happens, especially during the London/New York overlap.
Best Time to Trade the New York Session
If you’re looking for high-probability trade setups, the best time to trade is during the morning session, particularly the overlap with the London session. This window provides:
- High liquidity
- Strong volatility
- Fast trade execution
- Major U.S. economic news releases
Another trading opportunity arises during the afternoon session. Once traders return to their desks after lunch. While trading opportunities can emerge at any time depending on your strategy, the overlap period offers the ideal market conditions for both entries and exits.
Remember: What every trader wants is liquidity, and the New York session delivers it.
Which Currency Pairs to Trade During the New York Session?
While many pairs experience volatility, the most active and liquid during the New York session include:
- EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- USD/CAD
- Other CAD pairs
Tip for beginners: Stick to one major pair while learning. High volatility means greater reward but also greater risk. Master one pair before expanding your watchlist.
Key Characteristics of the New York Session
- U.S. Economic Reports: Major news releases happen near the start of the session. Since over 85% of forex trades involve the U.S. dollar, these reports can shake the market.
- Trend Continuation: The session often continues trends from the London session, especially after pullbacks.
- High Liquidity: Most notable during the London overlap, which fuels tight spreads and better fills.
- Trade Setups: A great time for high-probability setups depending on your strategy.
- Low Spreads: Especially for major pairs like EUR/USD and GBP/USD.
Final Note for Beginners
High volatility can lead to both rapid profits and rapid losses. That’s why it’s wise to start with one currency pair and focus on building consistency before scaling up.
In our next lesson, we’ll discuss the best times to trade the forex market overall.
See you there, and happy trading!
