Time Zone Based Strategy
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Different financial markets operate during specific time zones. As a result, trading volume and volatility vary depending on the time of day. For example, the overlap between London and New York sessions in forex trading tends to show the highest liquidity. In Indian markets, the opening hours (9:15–10:30 AM) often show aggressive moves due to overnight global cues, while the closing hour (3:00–3:30 PM) is significant for institutional order flows. A time zone-based strategy involves aligning trade entries and exits with peak market activity windows. Traders may also focus on specific assets during their active hours — for instance, trading crude oil during U.S. market hours or EUR/USD during the European session. This strategy can help reduce noise and increase probability of trade success. Intraday traders often use volume profiles and volatility indicators during different hours to identify optimal trade setups. It's also essential to adjust for Daylight Saving Time changes across regions. By analyzing time-based behavior of instruments, traders can plan their approach with greater precision and efficiency.