Forex trading is a 24-hour market, but it is important for traders to understand the concept of bars in forex open close. This concept is essential for traders to know when the market opens and closes, which can affect their trading decisions.
Bars in forex open close refer to the different time periods within a trading session. These time periods are represented by bars on a forex chart, which show the opening and closing prices of a currency pair during a specific time period.
A bar chart is a popular type of forex chart that displays the opening, closing, high, and low prices of a currency pair for a specific time period. This time period can be a minute, an hour, a day, a week, or even a month.
The concept of bars in forex open close is based on the fact that the forex market is open 24 hours a day, five days a week. However, the market does have specific opening and closing times in different regions of 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 opening and closing times, which are based on the local time zone of the financial center.
The Sydney session opens at 10:00 pm GMT and closes at 7:00 am GMT. The Tokyo session opens at 12:00 am GMT and closes at 9:00 am GMT. The London session opens at 8:00 am GMT and closes at 5:00 pm GMT. The New York session opens at 1:00 pm GMT and closes at 10:00 pm GMT.
To understand the bars in forex open close, let’s take an example. Suppose the London session starts at 8:00 am GMT and ends at 5:00 pm GMT. During this time, a forex trader can create a bar chart that shows the opening and closing prices of a currency pair for each hour of the session.
For instance, the first bar of the chart will show the opening and closing prices of the currency pair for the first hour of the London session, which is from 8:00 am to 9:00 am GMT. The second bar will show the opening and closing prices of the currency pair for the second hour of the session, which is from 9:00 am to 10:00 am GMT, and so on.
The bars in forex open close are important because they help traders to identify trends and patterns in the market. By analyzing the opening and closing prices of the currency pair during different time periods, traders can gain insights into the market’s behavior.
For example, if a trader sees that the opening price of a currency pair is consistently higher than the closing price during a specific time period, it may indicate that there is a bearish trend in the market, and the trader may consider selling the currency pair.
Similarly, if a trader sees that the opening price of a currency pair is consistently lower than the closing price during a specific time period, it may indicate that there is a bullish trend in the market, and the trader may consider buying the currency pair.
In conclusion, bars in forex open close are an essential concept that traders need to understand to be successful in the forex market. By analyzing the opening and closing prices of a currency pair during different time periods, traders can gain insights into the market’s behavior and make informed trading decisions.
