{"id":103667,"date":"2017-03-26T06:55:39","date_gmt":"2017-03-26T10:55:39","guid":{"rendered":"http:\/\/countingpips.com\/?p=103667"},"modified":"2017-03-20T06:57:03","modified_gmt":"2017-03-20T10:57:03","slug":"how-do-trading-hours-impact-the-forex-and-financial-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/how-do-trading-hours-impact-the-forex-and-financial-markets\/","title":{"rendered":"How Do Trading Hours Impact the Forex and Financial Markets?"},"content":{"rendered":"
March 26, 2017<\/div>
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By Admiral Markets<\/b><\/p>\n

\"time<\/p>\n

Dear Traders,<\/p>\n

Price action is always popular with traders and rightfully so. But I always recommend traders to keep in mind the importance of time, too.<\/p>\n

This article explains the impact of time on analysis and trading decisions. It also reviews how to be properly prepared for the trading day and week.<\/p>\n

\"MT4<\/a><\/p>\n

Does only price count, or time too?<\/h2>\n

Price action traders would probably say no without perhaps realising that charts are in fact a combination of both price and time<\/strong>. The right side (vertical axis) shows price and the bottom (horizontal) shows time.<\/p>\n

So, going back to the question of does time count, my answer is yes<\/strong>, time is important in various ways such as my
\ntime factor pattern<\/a> and fractal<\/a>.<\/p>

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But time also impacts the market in other ways, such as trading zones to time frames. This article reviews the multiple angles connected to time, such as:<\/p>\n

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  1. the opening hours of the Forex market<\/li>\n
  2. the trading sessions<\/li>\n
  3. the importance of trading days.<\/li>\n<\/ol>\n

    \"trading
    \nSource: babypips<\/p>\n

    The market trading times explained<\/h2>\n

    The first obvious time boundary are the opening hours of the market. The Forex retail market is open 24 hours a day for 5 days a week, whereas major banks remain open during the entire week. The market is also closed during a couple of major holidays like New Year’s Eve.<\/p>\n

    The notable advantage of the Forex market is its lengthy opening hours and hence the ease of market access, which stands in stark contrast with some of the other markets that are only open 6 hours a day.<\/p>\n

    The second important factor is that the trading day can be split in four different sessions<\/strong> because Forex spans the entire globe:<\/p>\n

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    1. Sydney <\/strong>session: this is the first session of the day.<\/li>\n
    2. Tokyo <\/strong>session: starts with the Japanese market.<\/li>\n
    3. London<\/strong> and European session: start within 1 hour of each other.<\/li>\n
    4. New York<\/strong> session: the last session of the day.<\/li>\n<\/ol>\n

      Each of these sessions has open and closing times (see table 1 and 2 above). These times vary by one hour depending on summer and winter times.<\/p>\n

      The highs and lows of the session such as the Tokyo session are often used for support and resistance purposes, breakouts, and bounces. The same holds true for the London opening hour. Nenad even explains a trading system based on those hours in the video below.<\/p>\n