Been looking into session overlaps and their impact on volatility and spreads.
London-New York seems obvious but wondering about other overlaps worth paying attention to. How much of a difference does it actually make in your trading results?
The London-New York overlap is where money really moves. EUR/USD and GBP/USD go nuts between 8-11 AM EST. Spreads tighten up and volume explodes.
I used to trade Asian hours thinking less competition meant easier wins. Dead wrong. Low volume made entries and exits sloppy, and wide spreads killed my profits.
Now I stick to that London-New York window for major pairs. You get real volatility and actual price movement instead of choppy sideways garbage.
Tokyo-London works for yen pairs like the other guy said. But most retail traders should focus on London-New York first. That’s where institutional money flows and you get clean price action.
Sydney-Tokyo overlap works fine for AUD pairs too.
The Tokyo-London overlap is great for EUR/JPY and GBP/JPY since both European and Asian traders are active.
During these times, spreads tighten compared to quieter periods like Asian afternoons. My fills tend to improve significantly during these windows.
It’s not a major shift but timing your entries can help.
Session overlaps work because liquidity spikes and spreads tighten. The real win is predictable volatility patterns. London-New York overlap crushes it for EUR/USD and GBP/USD. Tokyo-London is your friend for yen crosses. Match your pairs to the right overlap. I get 20-30% better fills during these windows compared to dead hours. Stops and targets actually get hit instead of sitting in thin markets. Don’t overthink this. Find one overlap that works with your schedule and nail it.
I just trade London open. Overlaps are nice but entry timing beats session timing every time.