Which Trading Session Should You Trade?
#493: Which Trading Session Should You Trade?
In this video:
00:25 – The best time to trade?
01:12 – Forget about the trading sessions
01:50 – Trade at the close of a candle
03:25 – I trade in 30 minutes a day of chart time
03:50 – Blueberry Markets use the correct charts
04:50 – 12 Monthly chart trades taken in March
05:28 – Like and subscribe
A lot of people get confused with not knowing what trading session is best for them to trade. Let me help you with that topic right now.
Hey, traders. This is Andrew Mitcham here, the owner of the Forex Trading Coach with video and podcast number 493.
The best time to trade?
Today I want to talk about trading sessions. When’s the best time for you to trade? Should you be trading the Asian session or the European session or the US session? And a lot of people get a lot of confusion going around that.
So the issue that I see is people think that they have to be there just at the European Open because that’s when the market is most active. But then for some people they’re at work or for some people that’s at nighttime. And so they feel that there has to be output like crazy hours of the morning or night and to trade properly.
Other people think that they need to be there for the US session. For me, that starts at like 2:00 in the morning. No way. I’m going to be there at 2:00 in the morning. Getting up, trading the US session. So the short answer is you don’t need to do any of that. But the issue is that so many people get confused with that.
Forget about the trading sessions
So the easy way around that is to forget about the trading sessions based your trading on the New York start of day charts. Now 5 p.m. New York time on a Sunday, the Forex market opens and it stays open for 24 hours until 5 p.m. New York time on a Friday. So that means at 5 p.m. New York time, every day of the week, the daily charts change over from one day to the next.
At that same time, the 12 hour charts change. The eight hour charts change. So do the six hour charts and down further from there.
Trade at the close of a candle
And so if you look at trading based on the close of a candle, that means you can trade. Doesn’t matter where you live in the world, what your time zone is. It’s why we have clients in 101 countries around the world at the Forex Trading Coach, and nobody has any issues trading our strategy.
And that’s why we’re not saying you need to be there at the beginning of Europe for the first 2 hours. That would be terrible. I could think of nothing worse than sitting glued, watching the charts, just sitting, waiting for something that might happen. The issue then becomes this You force trades or you think, Well, because I’m here right now, I have to make something happen.
Say you force trades and you do silly things. If you look at your charts at the close of a candle and you don’t even need to be there at exactly that time because we trade using limit orders. So we don’t need to have to be there. But if you do look at the close of a candle, let’s say on a four hour chart or a six hour, 12 hour daily, whatever it is you’re trading.
Have a look through there. Everything set. If you’re using any indicators, none of the levels are moving. They’re set because the candle has closed. And so that means that you’re not there trying to react in real time, you know, because something’s moved up or down a few pips or things like that, or you’re taking an indicator on a buy signal and then you find that 5 minutes later it then turns around and looks like it should be a sell signal and you get away from all that confusion.
You get away from that confusion of like a 15 minute chart says, Buy it an hour chart says sell. You get away from all that. And it also means you trade when it suits you.
I trade in 30 minutes a day of chart time
I personally trade in no more than 30 minutes a day actual chart time because quite easily two or three times a day I can scan through all my charts, all the currency pairs, all the timeframes that I need to look at in that time.
So if you do that, it takes you away from that mentality of feeling like you need to be there at different trading sessions. That is not a great way to trade.
Blueberry Markets use the correct charts
And so leading on from that, have a look. If you’re after a good broker at Blueberry Markets, Blueberry Markets are fantastic bunch of people, great brokerage, they offer MT4/MT5 charts and they do use the correct 5 p.m. New York Times start of day charts on their charts.
Just be careful if you with any other broker. I mean, more and more brokers finally are working at that 5 p.m.. New York Time is the start of your daily charts, but some still have what they call a Sunday candle, and it means that on a daily chart you’ll have six candles in a week and you’ll generally have like a candle, small candle, the beginning of the week.
The last two or 3 hours before the first candle of the week is properly starts. I would try and avoid brokers who offer charting packages like that is not great. You need five full complete days in the week on the daily charts and therefore your charts will start and the broker starts the new week at 5 p.m. New York time.
12 Monthly chart trades taken in March
I’m talking about also scanning through your charts really quickly. Yesterday, been sorry on Wednesday, start being the first of the month for March. I took 12 trades yesterday based off the monthly charts really easy one from once a month to scan through the charts. I saw 12 trades, which is really high. We don’t generally get as many as that, but all the set ups were there.
So guess what we did? We took the trades. I’m that’s it. That’s all I’ve done with them. Put the trades on and leave them. Let’s see how they go. So again, very short amount of chart time, make you analysis, take your trades, trust your set ups, trust your systems, put the trades on, let the market do its thing. So how that helps as Andrew Mitchem here at the Forex Trading Coach.
Like and subscribe
Any topics you’d like me to discuss on future videos and podcasts? Add them to the comments box like and subscribe to this video and feel free to share it around to any friends who are interested in progressing with their trading. Once again, thanks very much. I’ll see you this time next week.
This is Andrew Mitchem at the Forex Trading Coach. Bye for now!