Notes on session breaks/continuity of the FX market
Posted: 13 Apr 2007
Thought some of the traders concerned with the problem of session break handling might find the following discussion interesting... These are excerpts from a discussion between a trading friend of mine in England and myself. Feel free to add lib anywhere you like. I will add to this as the discussion progresses. I post this for informational purposes only. This isn't a request for help from TSsupport on this problem as it is clear that our charting provider is unwilling to deal with it...
FX trades 24/7 but the custom among charting providers is still to recognize the session break, which means that, with reference to the way the data is displayed, FX is no different from the stock market. Candles are broken at the 24 hour mark according to the NY close so that datawise FX is not a continuous market. This situation prevails because those in the business of data display and charting insist on recognizing the session break. This corrupts the whole process of candle generation and distorts the market picture.am a little puzzled by the SBC's, if I take this to mean that like the stock market, SBC's indicate the end of the trading period, then how would this occur in the Forex market that trades world wide on a 24/7 basis.