Session overlap refers to the periods when two or more major financial markets are open simultaneously. In Forex trading, this occurs when different trading sessions, such as the London and New York sessions, overlap. This period is typically characterized by higher trading volumes and increased liquidity, as traders from both sessions participate in the market. The overlap can lead to more significant price movements and heightened volatility, as market participants react to economic data releases, news events, and other relevant factors. Understanding session overlap is crucial for traders seeking to capitalize on these conditions for improved trading opportunities.
