Time zones provide traders with opportunity to trade binary options whenever it’s convenient for them – at any time of day or night. You can trade on weekday but also on weekends (but not all assets). There are four distinct trading sessions: Pacific session, Asian session, European session and American session. These may overlap and often they do. We will write more about those sessions in this Olymp Trade strategy article, so keep on reading.
Olymp Trade Strategy – Pacific session
Most dynamic of all markets is definitely the currency market or so called forex market. On Monday at midnight Moscow time, morning comes in major cities like Sydney and Wellington, where currency exchanges begin working – the market „starts“. You can see that in Olymp Trade trading platform, the charts will start fluctuating. This is beginning of the first session called – Pacific session. At this time in the economic calendar news from New Zealand are published. This is good time to make money on currency pairs that include New Zealand dollar (NZD). Trade according to news from economic calendar and make some early morning profits. By the way at about 00:30 there my be data on America in economic calendar that can shift quotations of pairs that include United States dollar (USD).
Pacific session lasts for nine hours (like any other). This is standard working day for stock exchange employees. However until 3 o’clock in the morning traders are not particularly active on trading charts. Still, the majority of traders are sleeping.
Olymp Trade Strategy – Asian session
When the Asian session starts it’s the active time for the currency pairs that include Japanese yen (JPY) and Australian dollar (AUD). At about 2:50 Moscow time, data on Japan appears in the economic calendar. This data can greatly change the course of the pair USDJPY.
You must know that Japanese central bank makes sure that their currency observes the “golden mean”: not worth too much or too little. Therefore, central bank can shift the course of currency pairs including JPY at its discretion. This especially applies to USDJPY currency pair. Central bank “infuses” additional amounts of currency when necessary just to keep their currency on track. This makes it very unlikely for strong trends to appear. Central bank’s intervention happens suddenly and it can’t be anticipated. When it happens you can see a long vertical line on your trading chart, the shift schedule to a new level: either strongly up or down. None the less, the time of the Asian session is considered rather calm: the market is waiting for Europe to wake up.
Olymp Trade Strategy – European and Russian sessions
When morning comes to Moscow, at around 9:00 Frankfurt, Zurich, Paris and London exchanges come into play. Popular exchanges, investment funds, the largest banks – all this unfolds on charts in trading platforms serious activity. London session actually starts one hours later at 10:00 Moscow time. At this time you can expect publication of news from UK, Germany and the euro area as a whole. The currency pairs that include British Pound (GBP), Swiss Franc (CHF), Euro (EUR) start trading in large volumes. The largest movements in the foreign exchange market, as a rule, occur at this time.
Also at 10 am, the Moscow Exchange opens in Russia, this brings ruble to the world stage. For the nex 8 hours – until 18:00 Moscow time it is the most favourable time for making deals with currency pairs USDRUB and EURRUB. At 14:00 the stock exchange employees go to lunch and the fluctuations in the charts become a bit calmer.
Olymp Trade Strategy – American session
You can start preparing for American session already from 15:00 Moscow time. At that time there are usually first news from United States published in Olymp Trade economic calendar. This news will affect all currency pairs that include USD. It’s very important to follow news from Olymp Trade economic calendar while trade since this news almost always affect price movements of trading assets. In Olymp Trade economic calendar also features weekly selection of the most significant news that you should be paying close attention to.
Finally at 16:00 Moscow time, officially New York and Chicago exchanges begin their working day. They overlap with European session until 18:00 Moscow time. This drives currency pair EUR/USD up and down more than usual. Within these two hours while two sessions with biggest trading volume overlap, a pair EUR/USD is perhaps best of all assets for quick and active earnings on binary options trading.
You can expect fresh news from United States to be published at Olymp Trade calendar at 16:30 Moscow time. This news might easily change balance of power on the trading chart. And then, finally, starting at 18:00 Moscow time you can find a lot of important data on the US. Pay close attention to this news since markets in American session react really fast.
Keep in mind that currency pairs with USD seriously affect gold, so incoming news can have huge effect on gold price. So, positive data on America can make quotes “Yellow metal” to go down for several hours in a row. Activity on exchange begins to fade around midnight and is replaced again by Pacific session, opening new trading day.
Olymp Trade Strategy – Sessions in winter and summer
Keep in mind that there are winter and summer times. They differ by one hour. This means that important data in the economic calendar will be published one hour earlier than during winter time period. Summer time starts at the middle of spring and lasts until the middle of autumn. So, for example in summer you will see important news on United States not at 16:30, but at 15:30 Moscow time.
Pacific Session: 00:00 – 09:00 (winter and summer)
Asian session: 03:00 – 12:00 (winter and summer)
European session: 09:00 – 17:00 (in winter), 08:00 – 16:00 (in summer)
American Session: 4pm – 1am (winter), 3pm – 12am (summer)
Olymp Trade Strategy – Features of the “thin” market
We need to introduce to you important concept of “thin market”. Thin market is the time when one session overlaps another. During these periods on the charts of various currency pairs you cen see strong and unpredictable fluctuations. Therefore we recommend beginners to avoid trading binary options in the following time periods:
In the winter: 2:45 – 3:45; 8:45 – 9:15; 15:45 – 16:15
In the summer: 2:45 – 3:45; 07:45 – 8:15; 14:45 – 15:15
Sharp movements of prices are also very common in the last two weeks of December. At that time large investment companies, funds and banks withdraw their funds from foreign exchange market to take stock, calculate profits and losses. After this period exchanges go to Christmas holidays and this gradually reduces activity on all currency pairs.
Olymp Trade Strategy – Trading By Sessions
It is very important to plan your trading activity according to trading sessions. Many beginners either don’t know this or they tend to forget. If you wish to trade JPY pairs Asian session is the best, fi you are into EUR/USD choose either American or European session. Why? It all comes down to news. If you are trading at the time the news get published you can use that to your advantage while trading. If you wake up after say Asian session all the important news from that part of the world are already old news and have no effect on JPY price movements for example. So currency pairs that have JPY will be moving according to news from other markets. For example if European session is active EUR/JPY pair will move according to fresh news from Euro zone not according to old news from Asian session.
If you are not experienced trader avoid times when sessions overlap, because things can get very chaotic. This period is good only for experienced traders who know what they are doing. Make sure you know what is the time in big trading centres such as Tokyo, London and New York. And make your trades accordingly. If you are trading during the American session you can focus on news coming from American and make your trades accordingly. During overlap periods news from two different world regions come into play. So it may happen that there are at the same time positive news for euro and for dollar. What will happen to EUR/USD pair? Nobody can know. Maybe if there are positive news about euro and negative news about dollar markets can make clear movement on EUR/USD pairs, but it is quite risky and unless you are an experienced trader you should really avoid trading in this overlapping periods.
Olymp Trade Strategy – Series of articles
We are writing series of article about trade strategies recommended by Olymp Trade. Stay tuned to find out more about trading strategies recommended by this broker. We keep on publishing them regularly. For now you can read about strategy called binary gambit and ladder trading. If you are looking for more information about Olymp Trade feel free to read our comprehensive Olymp Trade broker review. If you wish to open trading account to try some of these strategies just click on the button below the text. You don’t need to invest your money immediately you can practice trading using their demo account.