Forex Signal Service – A Look At The Time Zones
Thursday, July 15th, 2010For an average trader, forex trading time zones can be intimidating and difficult . Like most traders , when I started in this global, cash, 24 hour market, the time zones issue never made a whole lot of sense to me . Over time that would change and in this article I will share some basic insights on how I handle this market and when you prepare for your next trading day, it will help you out .
The first thing you need to consider is where you live , or the place where you do your forex signal service trading from. This will be the single greatest factor affecting how this 24 our market is looked at . For an example let’s say that you live in California which is on the West Coast in the U.S. and on Pacific Standard Time which happens to be three hours behind the time on the East Coast .
Now that we know that California is where we’ll be doing the trading , which is 3 hours behind New York , we can begin to plan our forex signal service trading day. In this never sleeping 24-hour market ( although it does quiet on international holidays and weekends ) the trading day stops and resets with the New York financial centers closing at or around 5pm EST and the banking centers in the Far East like Hong Kong and Tokyo opening, starting their new day, at about that same time . Keeping this in mind it’s best to have your trading charts set up so that the candle or daily bar that you are using closes at 5pm EST every day .
So now we’ve determined that we are trading from the West Coast in the US which is 3 hours behind NY’s Eastern Time and we know when the market resets and stops to start a new day . Next we have to decide when to prepare and plan for the next day . If California is where you live, like our example, and you like staying up late then perhaps you’d like to get ready to trade the London session from about 1am PST (4am EST) to 4am PST (7am EST) . Or, maybe you enjoy your sleep and want to doze through the London session but you don’t have a problem being up early, at about 4am Pacific Time so you’re able to see the London session end and get prepared for the session in New York which gets a good start at 8:30am EST or 5:30am PST. Or, finally, perhaps you hate waking up early and the middle of the day is when you prefer to trade; this is not a problem. Just wait for 2pm PST or 5pm EST when the new day in Tokyo starts and you can trade FX during that major market session .
Now you’ve got a clear handle on what the major forex trading time zones are all about and you can accordingly plan your days . Just remember, planning and preparation are perhaps the two most over-looked, yet important factors of success in this business and any other business . Thinking this through you should be able to plan your forex signal service day.
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