Have your ever received an email from your broker informing you about the changes in the trading schedule?
Well, most traders do not really pay much attention to it but it can have impact on your trading since majority of traders use candle sticks to decide whether to enter the market or not. While time frames remain the same changes in daylight can affect time these candles on open or close.
What is Day Light Saving Time?
Day light saving is the practice of forwarding clocks during the summer season so that the evening daylight lasts longer than usual, at the same time sacrificing the time of the sunrise to save energy. Traditionally, regions that follow daylight savings times advance their clocks by one hour during the start of spring and adjust it back to the standard time as autumn season begins.
Global Time Changes
Given the global nature of Forex trading, it isn’t just local time changes which can impact the charts. The difference in daylight savings time around the world can also affect. For example, a broker based in Cyprus runs on GMT time. So, when the clocks move back at the end of October, the time at which the candles on its MT4 platform begin and end measuring each session will also move back by one hour.
To give a practical example of this. If you are in New York, looking at the MT4 platform of a European broker, the times will be seven hours ahead of you meaning that the 8 am candle on the platform open will be at 1 am local time. However, once the clocks go back in Cyprus, on October 27th, the time difference will be one hour less meaning that the open will now be 2 am in New York. However, on November 3rd, the clocks go back in New York, the open of the four-hour candle will go back to being 1 am.
When Does This Happen?
The following dates are to keep an eye around
1. UK 27th October 2019
2. EU 27th October 2019
3. US 3rd November 2019
4. Australia 5th April 2019
Also remember to check the timezone that your MT4 broker is using as it will not be the same as you local time zone and make sure to set reminders when the clock change.
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Raymond is a professional currency trader with experience of 4 years trading the financial markets. Certified Risk Manager and Contributor at profxtigers.com
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