Depending on the time of the global foreign exchange market, there are several trading sessions - Asian, European and American. It's no secret that the various trading sessions in different currencies of different driving dynamics. Therefore, there are certain strategies in Forex trading, depending on the current time and the trading session.

First we need to define the favorites of each session. During the Asian session, the highest activity on the basis of historical data, show the following currencies - GBP/JPY, EUR/JPY and AUD/JPY. As you can see, the Japanese yen appears as a driving currencies during trading in Tokyo, and operates the Australian Stock Exchange, so the Australian dollar also shows high activity. For trading during the Asian session characterized by the following factors:

1. Most activity occurs during the first hours of exchanges, largely because of the publication of economic news on Japan, Australia and New Zealand.
2. Currency movements may form the basis for the rest of the day.
3. As a rule, if during the U.S. session was significant movement, during the Asian session, the market pulls back.
4. Currency pairs are usually traded in narrow ranges.

By bidding strategy on forex during the Asian session, the Strategy for the trade based on the strength of the U.S. session. Trader needs to determine how many points went to the market early in the Asian session, and if it's greater than 60 - 80 points, there is a high probability of a correction. The stronger the movement were, the more likely the reverse movement during the Asian session. Also, if indicators like Stochastics or RSI are oversold or overbought, at the time of the Tokyo they will be restored.

Next comes the European session. Nearly a third of the total trading volume falls on working hours in Europe. During the European session activated currencies such as the EUR, GBP and CHF. Primarily this is due to the opening of European banks, which are beginning to transact in local currencies, and secondly, once again, begin to publish economic data for the euro area countries, which can cause large fluctuations in the market.

By bidding strategy on forex during the European session, in view of its increased activity, increased liquidity and large volumes can be attributed many ways to trade. One of them is the strategy of the breakdown of maximum or minimum level reached during the Asian session. During the opening of the London traders are watching the price range and wait for breaking one of the boundaries. After breaking open position in the direction of the breakdown and the stop level is placed at the other end of the range.

The U.S. session starts at 12:00 GMT. America is the world's economic center. Features of U.S. session:

1. Start trading in the U.S. accompanied by high liquidity and volatility, high activity is also achieved by combining European and American session.
2. The most important news out exactly when trading in the U.S., they often determine the future prospects of the market.
3. By the end of the U.S. session, the activity of market falls and you can note the presence of sliding movements, which are then developed during the Asian session.

The most traded instrument is the U.S. dollar. During the U.S. session, you can use a variety of strategies in Forex trading. Trade with the trend, breaking through the established ranges, and trade on technical levels can make a profit. Depending on the dynamics of the market trader should choose the most suitable strategy. Great attention should be paid to economic news, many traders are waiting for the news and take positions with the published figures.

Each trading session has its own characteristics, and an experienced trader, you should consider them. There is no strategy in forex trading, to operate 24 hours a day, so each market participant chooses a more appropriate time for him and the style of the trading day. We advise you to begin to trade within each trading session, eventually you will see for yourself which one is more suitable to you. Source: Dewinforex