Trading with Momentum: The Best Trading Session to Trade Forex, Gold and Indices

Goal of This Lesson

To help you time your trades with precision by knowing which sessions to trade, which session is the best among other sessions, why they matter, and what markets perform best during those windows - so you trade with the flow, not against it.

Real-Life Analogy: Like Surfing the Ocean

Surfers don’t paddle aimlessly all day - they wait for the right wave, tide, and wind.

Trading is no different. Time it wrong, and you’ll struggle. Time it right, and the wave carries you.

“Volume is your wave. Time is your tide. News is your wind.”

Master the timing, and the market will do most of the work for you.

Key Market Sessions

Which Session Is Best to Trade?

1. Best Overall: London–New York Overlap (8:00 AM – 12:00 PM)

Why This Window is Gold:

• Combines volume from both London and New York
• Hosts major economic news releases (NFP, CPI, Fed decisions)
• Optimal for breakouts, momentum, and large institutional orders

Markets to Focus On:

• EUR/USD, GBP/USD, USD/JPY
• Gold (XAU/USD) – reacts to USD and risk sentiment
• US30, NAS100, SPX500 – volatility kicks in at U.S. cash open (9:30 AM)

Tip: Expect increased volatility at 8:30 AM and 10:00 AM - common news release times.

2. New York Session (8:00 AM – 5:00 PM)

Why It’s Powerful:

• Drives most institutional flow for U.S. assets
• U.S. economic calendar dominates price action
• Indices respond to Wall Street opening bell at 9:30 AM

Markets to Focus On:

• Gold (moves with interest rate expectations and DXY)
• Nasdaq (NAS100) – highly reactive, great for momentum
• Dow Jones (US30), S&P 500 (SPX500) – strong macro links

Be cautious after 3 PM – volatility tends to fade unless there's breaking news.

3. London Session (3:00 AM – 12:00 PM)

Why It’s Strategic:

• Second-highest volume after NY
• Often sets the tone for the day
• Clear intraday trends form early

Markets to Focus On:

• EUR/USD, GBP/USD, GBP/JPY
• DAX40 (Germany), FTSE100 (UK)
• Gold – can trend early if USD news is anticipated

Smart Move: Prep your NY session trades by observing London price action and structure.

4. Asian Session (7:00 PM – 4:00 AM)

Why It’s Less Active:

• Lower liquidity = choppy or ranging moves
• Not ideal for scalping major pairs or indices
• Best used for planning, journaling, and backtesting

Markets to Focus On (if you must):

• AUD/JPY, NZD/USD, USD/JPY
• Crypto – active due to 24/7 market
• Range-based FX setups

Ideal for: Traders in Asia/Oceania, or those playing early breakouts from consolidation.

Why the London–New York Overlap is the King of Sessions (8:00 AM – 12:00 PM NY Time)

Based on Data:

• 70% of daily forex volume occurs during this overlap.
• According to BIS 2022 data, $4 trillion+ is exchanged daily during this 4-hour window.
• Highest institutional participation - banks, hedge funds, HFT firms, and prop desks are active.
• Most U.S. economic reports (e.g. CPI, NFP, Retail Sales) are released at 8:30 AM NY Time, causing large intraday moves.

Why It’s So Volatile:

• London traders are wrapping up
• New York traders are just starting
• Global economic overlap: U.S. data affects EUR, GBP, USD, XAU, indices - all at once.
• Session transition: Often creates liquidity grabs and false moves before the real trend unfolds.

Best Markets to Trade in the Overlap:

Example Volumes (during overlap):

Smart Money Concepts in the Overlap:

The overlap is where Smart Money Concepts (SMC) shine:

• Liquidity Sweeps:

Early spikes around 8:30 AM - 9:30 AM often target session highs/lows → engineered stop hunts.

• Displacement Moves:

Real direction emerges after the sweep, especially near 9:00–11:00 AM → look for imbalance and break of structure.

Either the market will proceed to continuation or reverse during this session.

Institutional Behavior to Track:

Actionable Trading Playbook:

1. Focus your trades between 8:00–12:00 PM NY Time

• Be present 15 minutes before 8:30 AM for Forex and 9:30 AM for Indices
• Especially on Gold, EUR/USD, NASDAQ after 8:30 AM and/or 9:30 AM
• Indices can spike 1%+ within minutes
• (AMD, MSS, FVG) to enter after the sweep
• Volume fades, spreads widen

1. Look for sweeps of pre-session highs/lows
2. Watch NYSE open at 9:30 AM
3. Use confirmation tools
4. Avoid revenge trading after 12 PM

For approaches, check my contents:

NAS100 - How to Trade the Nasdaq Like a Pro (Smart Money Edition)

Why Smart Money Concepts Work in News-Driven Markets - CPI, NFP, and More

How To Trade & Scalp Indices at the Open Using Smart Money Concepts (SMC)

Best Indices to Trade for Day Traders | NASDAQ, S&P 500, DAX + Best Times to Trade Them

Final Take:

"You don’t need to trade all day - you need to show up when the pros do."

The London–New York Overlap is where opportunity lives - if you prepare, wait, and strike with precision.

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.