When including Candlestick Price Action in your trading, like using the right types of candlestick charts, there are also certain times, which perform better when looking for a potential trade. In this topic I will go over depending on time frame a trader uses, when is the best session time to look for a potential setup on that market.
Of course, bearing in mind, this relates only to traders that use Candlesticks in their trading process or trading plan and to those that use a method that benefits from the larger moves in the market.
To answer this question, let me first break down time frame traded to session preference and then I will highlight a few exceptions to the rule based on currency relation to those sessions.
If Trading Daily or Weekly Charts:
If you trade the daily chart the best time to look at candlestick price action is in the beginning of the Sydney Session. This is also after the daily candle has closed.
As for the weekly chart, the best session time is the same as daily, however limited, to every Monday due to the weekly candle close.
Of course, making sure that you are using New York Daily Candle Close Charts which is suitable for price action trading.
To view the Live Forex Market Session Times page – click here.
If trading below the 4 hour time frame, such as 4 hour, 1 hour, 30 minutes, 15 minutes or 5 minutes, then the best session time for looking at candlestick price action is in the London to US session. These are the optimum times for trading volatility which causes bigger moves in the market and is also when the majority of the best traders in the world trade when trading below the daily time frame.
Now there are always a few exceptions to this rule in trading, one example is AUDJPY which performs well in the Sydney to Asian session due to the currency denomination.
In fact, many of the JPY based pairs (Asian currencies) perform quite well in the Asian session due to the Japanese Yen component. However, while they do quite well in these session performances tend to still fair better in the London to US session.