How do we explain a timing diagram in a technical talk?
If your audience cannot be expected to be fully familiar with timing diagrams, begin by explaining what they are - a lot of software people are unfamiliar with them.

I suggest alternating between showing the complete diagram for context and showing an expanded view of a portion of it. The expanded portion will be easier to read, and will call attention to the points you are currently making. You can add annotations that would not fit on the full diagram. When you show the full diagram, put a box around the piece you are going to explain next, so that the audience can see how it fits in the full diagram.

In the expanded views, I would keep all the signals in their normal order, but possibly bold the ones that are relevant to the current discussion.