- Reviewed by James Stanley, Nov. 24, 2021
The New York forex session is one of the most liquid forex trading sessions. When the US session overlaps with the London forex market session it is considered to be the most liquid period of the day.
What time does the New York Forex Session Open?
The New York forex session opens at 8:00 AM ET and closes at 5:00 PM ET. The ‘overlap’ occurs when the US Forex session overlaps with the London forex market session. The London Forex market session opens at 3:00 AM ET and closes at 12:00 PM ET, so the overlap occurs between 8:00 AM ET and 12:00 PM ET.
During this overlap, the US session could trade very much like the London session.
The beginning of the New York session is normally more volatile than later in the day. There are different methods traders can use to trade differing levels of volatility[1].
New York Breakout Strategy: Trading the ‘Overlap’
The ‘overlap’ is when the London and US forex sessions literally overlap each other. These are the two largest market centers in the world, and during this four-hour period – large and fast moves can be seen during the overlap as a large amount of liquidity enters the market.
The image below shows how during the overlap (between the green lines) of the two biggest markets, average hourly moves in the EUR/USD[2] reach highs.
To trade the overlap, traders can use a break-out strategy which takes advantage of the increased volatility seen during the overlap.
An example of the New York breakout strategy, using the EUR/USD[3], is shown below:
The EUR/USD[4] formed a triangle-pattern[5] which, during the overlap, the price
