The New York session is one of the most popular
trading sessions for forex traders worldwide. It offers ample opportunities to
make profitable trades, especially during the killzone hours. In this article,
we will discuss the key characteristics of the New York session and how to
trade it effectively.
The New York Killzone Hours
The New York killzone hours refer to the two-hour
window from 07:00 to 09:00 ET. During this time, the market experiences high
volatility, providing traders with opportunities to make quick profits. The
best pairs to trade during the New York killzone hours are the major pairs that
are coupled with the USD.
Optimal Trade Entry (OTE) Pattern
The New York open frequently sets up an optimal trade
entry pattern (OTE), offering traders 20 to 30 pips as a scalp. While it is
possible to make daily profits during the New York killzone, it is advisable
not to trade every day. Instead, focus on making 50 to 75 pips per week.
Pairs and Setups during the New York Session
While not every pair has a setup during the New York
session, every New York open has a setup in one or more of the majors that are
crossed with the dollar. Therefore, it is essential to keep an eye on the
market and identify opportunities to make profitable trades.
London Focus and New York Mitigation
While London is the primary focus for trading during
the beginning of the week (Monday, Tuesday, and Wednesday), the New York
session can be used to mitigate any trading mishaps during the week. By paying
attention to the market during the New York session, traders can take advantage
of any opportunities that arise.
Economic News Releases
The New York session sees a consistent round of
economic news releases, which can stimulate price action. These releases often
cause reversals or add fuel to the fire, creating momentum in the marketplace.
Therefore, traders must keep an eye on the news releases and use them to their
advantage.
The New York Session Hours
The New York session officially ends at 14:00 ET,
extending beyond the killzone hours. During this time, the market experiences
lower volatility, but traders can still identify profitable setups and make
profitable trades.
Continuation vs. Reversal
The New York session typically has two potential
scenarios: continuation of London's move or a complete reversal of the daily
direction. While reversals require a lot of training, continuations are much
easier to trade. Traders should focus on finding scenarios that agree with the
daily bias and look for their daily ranges to expand in that direction.
Conclusion
The New York session is one of the best trading
sessions for forex traders, offering ample opportunities to make profitable
trades. Traders should pay attention to the killzone hours, the best pairs to
trade, and the OTE pattern. By focusing on London's price action, traders can
anticipate the New York open to offer a continuation setup, leading to
profitable trades.