Note: These are just guidelines, as the market is constantly changing, and you have to be prepared to spot changes. These are things I have noticed with fair consistency happen happens repeatedly in the markets. Obviously to trade a breakout, you want to know which times are best for breakout trading. I only trade AUD/USD, GPB/USD, and EUR/USD, so this list caters to these pairs.
1) Asian session has low volatility, so price moves piss-poor slow. Hard to work with this. Not including breaking news events, the Economic Calender has a few items that causes strong spikes in the market:
-Bank Interest rate decisions (AUS mainly)
-PMI reports, especially from China
-Monthly Minutes (AUS)
EUR/USD and GPB/USD move so slow during this session that its not even worth looking at. Asian session is restricted to AUD/USD for me.
2) London session has medium/high volatility, and I noticed it depends on the day of the week. My Forex week starts on Sunday and ends on Friday, and volatility increases in the later half of the week, and is fairly mute during the first 2 days of each week. Here are some Calender Events that causes strong spikes in the market:
– GPB and EUR Interest rate decisions (If unchanged from month to month you won’t get much action out of it)
3) NY Session has very high volatility in the beginning, and tapers off near the end of the session. The main thing I look for in the NY Session is
-Fed announcements (between 5-7am)
4) Crossovers happen when you have multiple countries entering the market at the same time, so there is more players in the market. Breakouts CAN and OFTEN happen in the crossover period!
here is a link that shows market hours.
5) From what I’ve witnessed, these are the times that are best for entering a breakout (based on PST time, where I live)