Forex Market Sessions and Time-Zones
The Foreign Exchange market is open and active 24 hours a day, 5 days per week. This unique feature allows Forex investors in all over the world to trade during their normal hours.
Two Time Zones
There are two Forex time zones (Summer and Winter):
Forex Market Sessions
Currencies trade 24 hours a day, 5 days a week. This round the clock trading process exists due to different time zones where markets operate in the four corners of the world.
The Foreign Exchange market is divided into four main sessions: the European, the North American, the Australian, and the Asian sessions. Alternatively, these sessions are called as the London, New York, Sydney, and Tokyo sessions. As it was mentioned before, there are two time zones (Winter and Summer Zones).
(a) WINTER ZONE (OCTOBER-APRIL)
◙ EST (US) WINTER TIME ZONE
Typical EST/EDT Forex Winter Trading Hours:
◙ GMT (UK) WINTER TIME ZONE
Typical GMT Forex Winter Trading Hours:
MACD means Moving Average Convergence Divergence and it is a trend-following momentum indicator. It was developed by Gerald Appel in the late 70s.
MACD at a Glance
The MACD is a truly leading indicator and that means that it is able to identify the beginning of a price trend. MACD is considered one of the best technical analysis indicators but be aware that during choppy market conditions it may generate false signals.
MACD is a momentum indicator used for following the short-term price trend and for identifying upcoming price reversals. MACD is a lagging indicator, therefore, it can inform us accurately about price divergences but it should be used with caution as a signaling machine
In general when the MACD EMA Lines are positive (above zero) then there is a bullish activity on the market. On the contrary, when the MACD EMA Lines are negative (below zero) then there is a bearish activity on the market
-MACD is a very useful tool in order to identify potential price reversals
-The MACD divergences can pinpoint reversals better than any other technical analysis tool
-It is better to apply MACD using the standard settings (12,26,9) in M30, H1, and H4 charts