August 26, 2015 at 8:54 pm
You published this post just before I planned to sign off for the day lol. Good timing…
So here is my Answers based on your 2 Questions.
1. That is a tough one. I’d say both the London and New-York open. The first 1 – 2 hours of each session. But again, this greatly depends on what the market sentiment is, as well as the overall outlook if they (Market Makers) plan to move price during the Asian session. It is a grey area with no definite answer. If I was you I’d stick to the basics depending on your experience and knowledge based on how/who/when the FOREX market moves.
2. As you said, there is a big misconception that one should only trade a USD pair during the US market. Not always the case. You can trade the EUR/GBP during Asia if the price action is showing you where the market is heading. So rather look at what the charts are telling you, than worrying about which pair it is you are trading. Of course, the currency linked to the market open will have more volatility, yet again NOT ALWAYS the case.
So to sum this up. Let the charts (Price Action) lead the way, making your trading decisions based off of that. If we had to go into a Forex trading discussion it would be more complex than this.
BTW, if you guys would be interested in how the FOREX market works, let us know and we can definitely write up and article on it.