Forex markets are a global network of financial markets where traders buy and sell currencies. The forex market operates around the clock, from Monday to Friday, and is open 24 hours a day, five days a week. Forex traders use daily charts to analyze market trends and make informed trading decisions. Daily charts provide a snapshot of market activity over a 24-hour period, and are updated at the end of each trading day. However, the question remains, when do forex markets daily charts change days? This article will provide an in-depth explanation of this process.
Forex market hours
Before we delve into the topic of when daily charts change days, it is essential to understand the forex market hours. The forex market is open 24 hours a day, five days a week, from Monday to Friday. However, the market does not operate at the same intensity throughout the day. The market activity is at its peak during the overlap of the European and US trading sessions, which is between 8:00 am and 12:00 pm EST. During this time, the market experiences high trading volume, volatility, and liquidity.
When do forex markets daily charts change days?
Forex daily charts reflect the market activity over a 24-hour period, starting from the New York session’s open time, which is 5:00 pm EST. Therefore, daily charts are updated at the end of each trading day, which is at 5:00 pm EST. The reason behind this is that the New York session is the last major trading session to close, and it sets the closing price for the day.
It is important to note that the forex market operates across different time zones, and the 5:00 pm EST closing time is not the same across all regions. For instance, the New York session closes at 5:00 pm EST, but the Tokyo session opens at 7:00 pm EST. Therefore, the daily charts for the Tokyo session will reflect the market activity from 7:00 pm EST to 5:00 pm EST the following day.
Forex brokers and daily charts
Forex brokers provide daily charts to traders, and the charts are updated at the end of each trading day. However, some brokers may have different closing times, which may affect the daily charts’ accuracy. Therefore, it is essential to choose a reputable broker that provides accurate and reliable daily charts.
Another thing to note is that some brokers may offer Sunday bars on their daily charts. Sunday bars are the bars that form on the daily chart on Sunday, even though the forex market is closed. These bars are formed by the broker’s data feed, and they may cause confusion for traders who are not aware of their existence. Therefore, it is important to understand the broker’s data feed and how it affects the daily charts.
Conclusion
In conclusion, forex daily charts change days at the end of each trading day, which is at 5:00 pm EST. The charts reflect the market activity over a 24-hour period, starting from the New York session’s open time. However, it is important to note that forex brokers may have different closing times, which may affect the daily charts’ accuracy. Therefore, it is essential to choose a reputable broker that provides accurate and reliable daily charts.
