Understanding Forex Signal Service Time Zones

Understanding Forex Signal Service Time Zones


For the average trader, forex trading time zones can be intimidating and difficult. Like many others, when I started trading on the 24-hour world, money market, time zones do not matter a whole lot of sense to me. Over time this will change and here I'm going to show you some of the basics of how to deal with 24-hour market and hopefully this will give you some help getting ready for another big day of trading.

You first need to think about where you live or where they plan to do most of your forex trading signal service. This alone is the biggest factor affecting the way you look at this 24-hour market. For example, let's say you live in California on the West coast of the U.S. Pacific Standard Time (PST) zone, which is three hours behind east coast time in New York.

Now we know that trading will be done in California, which is 3 hours behind New York, we can begin to plan our forex signal service day of trading. In this never sleeping 24-hour market (but not getting very quiet on weekends and major international holidays like New Year) on the trading stops and returns to New York financial centers close at 17:00 or close to that in Eastern Standard Time and banking centers in the Far East, Hong Kong and Tokyo at the same time open and begins a new day. Keeping this in mind, it is best to have trading lists set up so that the candle or use Use daily bar closes every day at 17:00 EST.

So now we've determined that we are trading from the U.S. West coast that happen to be three hours behind EST in New York and we know when the market stops and returns to start a new day. Next we need to decide when to prepare and plan for the next day. If California is where they live, as in our example here, and you like staying up late, then the London session is what you might want to prepare for the trade of around 01:00 Pacific Standard Time at 04:00 Pacific Standard Time. Or maybe you enjoy your sleep and wanting to doze through the session in London, but getting up early is no problem at about 4:00 Pacific time so you are able to see the London end of the session and prepare for the start of the New York session that gets going around 05:30 Pacific Standard Time, or 8:30 Eastern time. Maybe you do not like to get up early and prefer to be mid-day trader, this is not a problem. Just wait until around 02:00 Pacific Standard Time when the day began in Tokyo and you can do your trading during this session.

Now you have a clear understanding of the major forex trading time zones and it can plan your days. Keep in mind, planning and preparing the most important factors, but often overlooked for success in this business and any other business. Thinking this through you should be able to plan your day forex signal service.

Andy Owings - Drummond Geometry master analyst. Author of Drummond Geometry Daily Forecast