Activity in forex follows a daily rhythm, and the pattern shows up clearly in tick counts and ranges. It is not flat, and strategies that ignore it end up treating very different markets as the same.
The Asian session is typically quiet for the majors, with activity concentrated in yen and Australasian pairs. The London open brings a surge, particularly in the first couple of hours. The mid-morning to lunch period in London quiets down. The New York open produces another jump, especially when data is released, and the overlap is usually the busiest window. After London closes, activity fades through the New York afternoon.
Charting average range per hour over a few months for each pair traded provides a map of this rhythm. The differences can be dramatic, with the best hour showing two or three times the range of a quiet one.
A scalper can use that to decide when to trade and with what targets. Setting the same target at 3am and at 9am London time makes little sense.
What does the hourly profile look like on the pairs traded, and does the strategy adapt to it?
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The hourly rhythm of the forex day
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