Financial markets are often described as chaotic, unpredictable, or random. In reality, markets are highly structured environments governed by participation, liquidity, and timing.
Price does not move because of indicators. It does not move because of patterns alone. It moves because large participants enter and exit positions, and they can only do so when sufficient liquidity exists.
Understanding how the market really moves requires stepping away from charts and examining who is active, when they are active, and why price behaves differently throughout the trading day.
The market functions as a 24-hour auction. Buyers and sellers compete for execution, and price adjusts to facilitate transactions. However, not all participants are present at all times.
The global trading day is divided into three primary sessions: Asia, London, and New York. Each session introduces different participants with different objectives.
Volatility expands and contracts based on participation. When participation is low, price tends to consolidate. When participation increases, price expands.
The Asian session is often misunderstood. Rather than initiating large directional moves, institutions use this session to establish balance, manage exposure, and define reference levels.
The London session represents commitment of capital. This is where volume enters the market, direction becomes clearer, and price often breaks from Asian balance.
The New York session introduces reaction and resolution. It may extend the London trend, reverse it after liquidity is captured, or consolidate ahead of the close.
Retail traders often struggle because they treat all hours equally. Institutions restrict when trading is allowed as a form of risk management.
Markets are not random. They move with structure, participation, and purpose. Understanding sessions allows traders to take fewer, higher-quality trades under conditions that support execution.