The American trading session is considered the largest in terms of volume and strength of market movements. All this is connected with the American economy, which is larger and stronger than the economies of other countries. The ability to correctly identify and use market fluctuations in the American session will help everyone earn a lot and quickly.
The opening hours of the American trading session in New York are from 8:00 to 17:00.
The largest financial platforms in New York and Chicago create the main activity of the American trading session.
Trading sessions
At 9 o'clock in New York, the largest market in the world opens - the New York Stock Exchange.
At this time, the giants of the financial world come into play and the market is gaining momentum. An hour later, another major exchange opens, which is called the commodity exchange, the Chicago Mercantile Exchange.
Due to the overlap of the two sessions of London and America, there is a lot of activity and a lot of volume at the beginning of trading.
High activity is observed almost throughout the entire session and stops when the offices of financial giants close in New York. After about one hour, the offices in Chicago also close, marking the end of the session.
Assets
With the opening of the American trading session, trading begins on large platforms in the USA, Mexico, Brazil, Canada.
In Canada, during the American trading session, trading opens on the TSE and CSE exchanges in Toronto, ME in Montreal. At the same time, trading starts on the Mexican Stock Exchange BMV.
During the American trading session, the largest Brazilian exchanges also begin trading: Bovespa in Sao Paulo, as well as BVRJ in Rio de Janeiro.
During this period, key indices are traded:
NASDAQ is a group of stock indices of five thousand companies listed on the exchange of the same name.
XAX is an index traded on AMEX and reflects the dynamics of stock prices and depositary receipts of all companies traded on the exchange.
The Dow Jones is one of the largest indices in the United States, including securities of organizations in almost all industries, except transport and utilities.
The S&P 500 is the stock index of the 500 largest companies on the NYSE and NASDAQ.
S&P/TSX is an index of high–capitalization companies whose securities are traded on the TSE.
Mex IPC is a Mexican stock index that includes securities of 35 large companies traded on the Mexican BMV.
BOVESPA is a Brazilian index based on the securities of 71 large companies traded on the exchange of the same name.
Thus, the American trading session takes place during the work of the world's largest exchanges, where most of the most significant stock indices are traded.
Currency pairs
The pairs that include the currency of one of the countries of this session have the greatest volatility during the American session:
Pairs with the US dollar:
AUD/USD, EUR/ USD, GBP/ USD, NZD/ USD, USD/BGN, USD/CAD, USD/CHF, USD/CZK, USD/DKK, USD/HKD, USD/HUF, USD/ILS, USD/JPY, USD/MXN, USD/NOK, USD/PLN, USD/RON, USD/RUB, USD/SEK, USD/SGD, USD/TRY, USD/ZAR
Pairs with the Canadian dollar:
CADJPY, CADCHF
The volatility of the euro–Mexican peso pair is also increasing.
Features
By right, the American trading session is considered the most active session among others. The main reason is the large economies of London and America, which are trading simultaneously at this time.
As you have already understood, the high volatility that is observed during the American session is capable of destroying any trader's account. It will be extremely difficult and dangerous for beginners to trade at this time.
The beginning of trading is considered an excellent time for scalpers, because during these hours there are strong price jumps, since strong movements can literally earn a decent profit in minutes.
After 11:00, sharp unexpected jumps may occur in the market caused by the actions of large American players, often working together and trying to get maximum profit by reducing the number of players in the market after the closing of European trading.
Before the weekend, during the American trading session, there is usually a pullback on the main trends, since Japanese investors do not trade, European investors leave for the weekend, and American investors try to lock in profits and not leave positions for the next week.
Conclusion
The American trading session is the most volatile part of the entire trading period. During this period, it is worth making transactions with caution, since powerful movements caused by large players are not uncommon.
This session is best suited for scalpers due to fairly strong fluctuations within the day, when a fairly large movement can be taken in a short period.
The most careful approach should be taken to assets related to the US dollar in one way or another, and, accordingly, follow the US news published mainly at the beginning of the session.