From my experience, the London session is the busiest out of all the different sessions. But there are also certain times in the week, where the forex market tends to see a lot of movement. Tuesdays, Wednesdays and Thursday move more, than rest of the week.
MANAGING YOUR TIME WISELY
Unless you never sleep, there is no way anyone can trade the Sydney, Tokyo, London and New York sessions. Even if you could, would you want to? While the forex market is open 24 hours a day, 5 days a week, it doesn't mean that action happens all the time. Sleep is an integral part of a good, healthy lifestyle.
You need 8 hours of sleep to recharge your batteries and be able to have enough energy, even to do the most boring of tasks. Each forex trader should learn when to trade.
BEST TIMES TO TRADE
The best time to trade is when two sessions are overlapping. There are also times when major news events come out to spark some volatility and directional movements.
The middle of the week typically shows most movement, as pip range widens for most of the major currency pairs.
The European session tends to be busiest out of the three.
WORST TIMES TO TRADE
Holidays: Everybody is on holiday.
During American Idol, major football matches.
Fridays: Liquidity dies down during the latter part of the U.S. session.
Major news events: You don't want to get whipsawed by spikes in the market.
Always remember these times when to and when not to trade, and you'll be better off in trading the forex market with your trading system.
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