Times two

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Times two

Postby MarkD » Thu Jan 06, 2011 7:49 pm

Well, two time related questions anyway.

I live in London, so have my trading software (Marketscope) set to GMT. I daily look out for when announcements are due (which I get in GMT) and either avoid trading or adjust my SL & TP of open positions during those times. These are scalping trades using 1hr or 15 min timeframes.
The trades I make are based on a 1 day time frame, ie. Daily trend I think is showing upwards so my scalping ignores downward signals.

Question 1:
The price bar on my daily window moves on (ie closes and starts a new bar) at 22:00 GMT, not 00:00 as might be expected.
I'm guessing 12 is somewhere in the answer, as in 22:00 GMT is 12:00 somewhere else, but where is it? I probably could work it out, but thought I'd ask first.
I initially thought NY but thats 8 hours difference isn't it?

Question 2:
I don't think it does, but this time difference, does it have an effect on the shape /patterns on the daily chart. I suppose "not" if we're all looking at the same thing.

TY

Mark
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Re: Times two

Postby JimmyMac » Fri Jan 07, 2011 3:58 am

MarkD wrote:The price bar on my daily window moves on (ie closes and starts a new bar) at 22:00 GMT, not 00:00 as might be expected.
I'm guessing 12 is somewhere in the answer, as in 22:00 GMT is 12:00 somewhere else, but where is it?

Although the forex market operates within a constant 24 hour trading wheel, the industry recognized close of the trading day is 17.00 New York (22.00 London).
That's when most platforms execute rollover dealing costs & adjusts transaction arrangements on live trades.

It's also a period in the trading day where volumes & activity are generally at their lowest & it's considered the "doldrums" or "dead mans corridor" as far as trading execution is concerned.

I wouldn't get too concerned about it if I were you, it doesn't matter a jot.
MarkD wrote:I don't think it matters but this time difference, does it have an effect on the shape /patterns on the daily chart.

Try coming at it from another (& more pertinent) angle & begin focusing more on where the price is reacting & why rather than what shape or pattern the bars are making.
The price bars/candles are simply representations of trader psychology. You'll begin to get a clearer idea of what's playing out on your technical chart when you start to observe how these bars react at important levels on the chart & the impact these levels exert on the traders executing orders on & around them.
MarkD wrote:I suppose "not" if we're all looking at the same thing.

Not everyone is looking at a level or zone in quite the same way or even considering a trade at what might appear a popular juncture.
You have to appreciate there are many differing agenda's & influences at play from the various levels of retail & institutional activity.
The sector you're involved in (retail) accounts for an incredibly small percentage of daily turnover.
In fact 90% of your deals never actually hit the live market, they're simply warehoused inside your brokers netting off facility where your trade is matched against someone else's going the other way.

Forget the time differences between broker chart applications, it won't unduly impact your activity at all.
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