Forex trading is a 24-hour market, and as such, it can be difficult to determine exactly when the trading day starts on forex charts. However, there are a few key times to keep in mind when trading forex.
The first thing to understand is that 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 trading hours.
The Sydney session starts at 10:00 PM GMT and ends at 7:00 AM GMT. This session is typically quiet, as the major financial centers in Asia are closed during this time.
The Tokyo session starts at 12:00 AM GMT and ends at 9:00 AM GMT. This session is characterized by high volatility, as the major financial centers in Asia start their trading day.
The London session starts at 8:00 AM GMT and ends at 5:00 PM GMT. This session is the most active and liquid of all the sessions, as it overlaps with both the Tokyo and New York sessions.
The New York session starts at 1:00 PM GMT and ends at 10:00 PM GMT. This session is also highly active and liquid, as it overlaps with both the London and Tokyo sessions.
When looking at forex charts, it is important to note that they are usually displayed in the time zone of the broker that provides the chart. For example, if you are using a chart from a broker based in London, the chart will be displayed in GMT.
To determine the start of the trading day on forex charts, you need to identify the start of the trading session that is most relevant to your trading strategy. For example, if you are trading the EUR/USD pair and your strategy involves trading during the London session, you would need to track the start of the London session on your forex chart.
One way to do this is to use a forex trading platform that allows you to switch between different time zones. This can be useful if you are trading from a different time zone than your broker or if you want to track multiple trading sessions at once.
Another option is to use a forex calendar that displays the start and end times of each trading session. This can be useful for planning your trades and identifying potential trading opportunities.
In conclusion, the start of the trading day on forex charts depends on the trading session that is most relevant to your trading strategy. Understanding the trading sessions and their respective start and end times is key to successful forex trading. By tracking the relevant trading session on your forex chart and using other tools like forex calendars, you can effectively plan your trades and maximize your profits.
