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Reading an Overnight Session Recap
7 min read
For traders based in Europe or the Americas, a lot can happen before their own session opens.
Understanding how to read an overnight recap helps you start the day already in context, rather than catching up on developments that already shaped price before you logged in.
Why overnight moves matter
Markets don't close just because your local session has ended - trading continues across other time zones, and news or data released overnight can move a market well before your own session begins.
Starting the day without checking this can mean missing the reason behind a gap in price, leaving you reacting to a level without understanding what actually drove it there.
- Continuous trading: Markets keep moving across other time zones after your local session ends.
- Overnight data: News or releases from other regions can move price well before your session opens.
- Explaining a gap: An overnight recap often explains why price is at a different level than it closed.
What to look for in a recap
A useful recap covers the overnight range for key instruments, any headlines or data releases during that window, and how other markets - equities, bonds, commodities - reacted.
The goal is to understand the direction of travel, not just the closing level, since two nights can end at the same price after very different overnight journeys.
- Overnight range: The high-low range key instruments traded within during the overnight window.
- Cross-market reaction: How equities, bonds and commodities reacted overnight, not just your own instrument.
- Direction of travel: How price got to its current level matters as much as the level itself.
Connecting it to your own session
Once you understand what happened overnight, the next question is whether your own session is likely to continue that move, pause, or reverse it.
This is often shaped by which regional session is opening next and what data it brings with it, since a fresh region opening can add new information the overnight session didn't have.
- Continuation, pause or reversal: The three broad ways your own session can relate to the overnight move.
- Session handoff: Which region is opening next shapes what happens as your session begins.
- New information: A fresh session can bring data the overnight session didn't have.
Put it into practice
Pair this routine with the live Economic Calendar, then put it into practice with a free Pairmetric demo account.
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