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Time Zones In Automatic Forex Trading
By John | August 25, 2010
For an average trader, forex trading time zones can be intimidating and difficult . Like many others , when I started in this global, cash, 24 hour market, I couldn’t make a lot of sense from the time zone issue. However, that changed over time 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 .
Consider where you live first, or where you’ll be doing most of the automatic forex trading trading from. This will be the single greatest factor affecting how you look at this 24 hour market . For an example let’s say that California is where you life which is on Pacific Standard Time and on the United States West Coast which is 3 hours behind New York’s East Coast time .
Now that we’ve determined that we are going to do our trading from California , which is 3 hours behind New York , the planning can begin for the automatic forex trading trading day. In this never sleeping 24-hour market ( although it does quiet on international holidays and weekends ) when the New York financial centers close the trading day stops and resets at 5pm or close to that in Eastern Standard Time and then banking centers like Hong Kong etc in the Far East open and start a new day at roughly the same time. Keeping this in mind it is the best idea to have trading charts set in a way that the daily candle or bar use use closes each day at 5pm EST .
Now that we have figured out we’re trading from the United States West Coast which is 3 hours behind NY’s Eastern Time and we know when the market resets and stops to start a new day . Then we have to decide when we will get ready for another trading day. If California is where you live, like our example, and you happen to be a night owl then you may want to start preparing to trade the London Session from about 1am Pacific Standard Time to 4am Pacific Standard Time . Maybe you want to sleep through the London session because you like sleeping but getting up early is no problem , around 4am PST (7am EST) so you can see what the end of the London session looks like and get ready for the beginning of the New York session which will really get going around 5:30am PST (8:30am EST) . Or, finally, perhaps you hate waking up early and the middle of the day is when you prefer to trade; no problem . Simply wait until about 2pm Pacific Standard Time when Tokyo gets started and you can do your trading during this session .
Now you have a good look at the forex trading time zones and what they’re about and you can accordingly plan your days . Just remember, planning and being prepared are the most important factors, yet often overlooked of success in any business , including this one . Making plans can be easy for your automatic forex trading day.
Topics: Trading |
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