Sessions and killzones: when to trade

Why time matters

Volatility is not evenly distributed: it concentrates at the London and New York opens. Trading when there is movement improves spreads and the chance of reaching your target; trading in a dead market produces entries that go nowhere.

The killzones (indicative times, New York time, ET)

• Asia: about 20:00-00:00, a range phase that creates the highs and lows to be swept
• London: about 02:00-05:00, often the first directional move of the day
• New York: about 07:00-10:00, overlap with London and US macroeconomic data
• London close: about 10:00-12:00, possible retracements

Translating to your time zone

When the US and Europe are both on daylight saving time (or both on standard time), New York is 5 hours behind London: the London killzone is about 07:00-10:00 London time, and the New York one about 12:00-15:00 London time. For Central Europe add one hour. In the weeks when the clock changes don't coincide, the difference is 4 hours: always check.

The economic calendar

Many killzones contain major announcements. Before trading check the site's economic calendar: if there is a high-impact event, decide in advance whether to stay out, reduce size or trade only after the initial reaction.

Exercise

• Pick a single killzone and stick to it for 30 days
• Record how many valid setups appear per day: almost always fewer than one