Forex trading is a highly popular and lucrative investment option for both experienced and novice investors. The foreign exchange market, also known as the Forex market, is open 24 hours a day, five days a week, allowing traders to trade currency pairs around the clock. However, understanding the Forex market hours is crucial for traders to make informed trading decisions.
In this article, we will discuss the Forex market hours and when a candlestick closes.
Forex Market Hours
The Forex market operates 24 hours a day, five days a week, from Sunday at 5:00 pm EST to Friday at 5:00 pm EST. The market is open across all time zones, which means that trading is always taking place somewhere in the world.
The Forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own unique characteristics, and traders need to be aware of the market’s behavior during each session to make informed trading decisions.
The Sydney session is the first to open, starting at 5:00 pm EST on Sunday. It overlaps with the Tokyo session for a few hours, and then ends at 2:00 am EST.
The Tokyo session starts at 7:00 pm EST on Sunday and ends at 4:00 am EST. It is the second busiest trading session after the London session.
The London session starts at 3:00 am EST and ends at 12:00 pm EST. It is the most active trading session, with more than 35% of all Forex transactions taking place during this time.
The New York session starts at 8:00 am EST and ends at 5:00 pm EST. It is the final trading session and overlaps with the London session for a few hours, making it a highly volatile time for trading.
When Does a Candlestick Close?
Candlestick charts are one of the most popular charting techniques used by Forex traders. They are used to analyze price movements and help traders identify patterns and trends in the market.
Each candlestick on a chart represents a specific period of time, which is determined by the trader’s chosen time frame. For example, if a trader is using a 15-minute time frame, each candlestick represents 15 minutes of trading.
When a new candlestick is formed, it signals the end of the previous candlestick’s time frame. For example, if a trader is using a 15-minute time frame and a new candlestick forms at 3:15 pm EST, it means that the previous candlestick closed at 3:00 pm EST.
The closing price of a candlestick is the price at which the candlestick closed. The opening price is the price at which the candlestick opened. The high price is the highest price reached during the candlestick’s time frame, and the low price is the lowest price reached during the candlestick’s time frame.
Conclusion
In conclusion, the Forex market is open 24 hours a day, five days a week, allowing traders to trade currency pairs around the clock. Understanding the Forex market hours is crucial for traders to make informed trading decisions.
Candlestick charts are a popular charting technique used by Forex traders to analyze price movements and identify patterns and trends in the market. Each candlestick on a chart represents a specific period of time, and the closing price of a candlestick is the price at which the candlestick closed.
