Learning to understand the daily forex signals in the 24/5 day a week market cycle is important to being profitable in the forex market. Knowing the tendancies of the various markets open for business at any given time opens windows of opportunity for the alert trader. So what is important to look for in daily forex signals in the various markets?

Markets Timing Hours of Operation

The first lesson in searching for daily forex signals is knowing which markets are open when. This will give you your first clue as to what pairs or trends will be liquid (very important) and easy to trade and which pairs may cause you some heartburn. Entry and exit points in forex pairs may have more to do with timing and liquidity and less to do with present profitability, if you know what I mean.

So which markets are open when? What principal *real* market activity (as opposed to market “churning” of trades) drives the forex markets in those locations? A geographically based understanding of supply and demand should give you good basis for understanding what real market forces are likely to go on and what represents other traders, speculators, banks and hedge funds fighting over profits with (against) you.

Foreign Exchange Market	Times of Operation (all times US EST)
London	3am-12pm
New York	8am-5pm
Sydney	5pm-2am
Hong Kong	5pm-2am
Tokyo	7pm-4am
Frankfurt	2am-11am

According to Wikipedia US dollar denominated trades account for nearly 85% activity on foreign markets. If you know your commodities as well as you do your forex markets you know that most commodities are priced and transacted in US dollars, particularly the most important market, Oil. That should give you any number of ideas as to how to research possible trading opportunities in US dollar trading relative to the markets for food, precious metals, and energy commodities. Understand the daily forex signals implied by commodities markets and exchange market hours and you’ll grasp the fundamental NEEDS the market(s) need to serve.

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