The late New York session: thin and strange

[Amanhasnoname]

From mid-afternoon New York time, activity falls. London is closed, many desks are shutting, and Asia has not yet started. The market runs on a skeleton crew.

Spreads widen, especially on crosses, and price tends to drift or move in jerks when an order of moderate size appears.

For scalpers, the environment offers little edge. Costs rise, ranges shrink, and the risk of an erratic move is higher. Stop-outs from spread spikes increase near the rollover window.

Some strategies are designed for these hours, such as range fading, and they can work on specific pairs. But they require careful cost control.

Most find that stopping by late afternoon improves the results and the quality of life.

If trading in this period, size should be reduced, spread filters tightened, and positions kept flat well before rollover.

A look at the journal split by hour usually settles the question quickly.

Is the late New York session worth trading, or does it cost more than it pays?