Differences between 1h and 4h TF?

[thomaas]

Hi,

Edit: I made my post more clear.

1. All brookers use different time zones.
2. So it means that on a 4h chart, the time of open of a candle may vary between brookers by a few hours, right?
3. But for 1h TF, I guess that all brooker start the open of a candle at about the same time. Is this correct?

If so, does it mean that a 1h TF is “more accurate”, since all traders are going to see basically the same candles?

Thanks for your help!

[etfak]

Hi,

I’ve learned that when you look at charts of different brookers, there are some differences in price due to:

1. each brooker is independent
2. each brooker use a different time zone

Am I right?

About number 2, I can understand that a 4h TF can be completely different between two brookers. But what about a 1h TF? Do all brookers start their hourly tick at basically the same time?
If so, does it mean that a 1h TF is “more accurate”, since all brooker are going to display basically the same price?

Thanks for your help!

The timeframe choice has got to do with the total capital in an account and the amount willing to risk per - specific - trade.
One has got to make a bit research before starting trading by applying the relative ATR (Average True Range, 14 periods or 20 periods; it’s not that important) usually in 1h or 4h or daily timeframes and determine the relative risk about to take considering the quality of the entry signal too.

Imho, this is the most important part in choosing the appropriate timeframe as all brokers use more or less the same data, meaning there are not worth noticing differences between them in the particular field (price action) nowadays.

Together with it is not worth it trading in timeframes below 1h.

gl

[thomaas]

Thanks for your answer, I agree with you.

But I’m still curious about the timezones. Is a 1h TF more similar between brookers than a 4h TF?

[etfak]

Thanks for your answer, I agree with you.

But I’m still curious about the timezones. Is a 1h TF more similar between brookers than a 4h TF?

Normally the bigger the timeframe the less the possible differences, if any.

In most trading software the timezones are adjustable to suit the trader’s needs.
Don’t get confused with such issues, all you need is to know the working hours for each market and a properly informed economic calendar like this site’s calendar (adjustable to timezones, among others).

[thomaas]

Thanks, but let me rephrase my question (English is not my native language, sorry).

1. All brookers use different time zones.
2. So it means that on a 4h chart, the time of open of a candle may vary between brookers by a few hours, right?
3. But for 1h TF, I guess that all brooker start the open of a candle at about the same time. Is this correct?

Thanks!

[etfak]

Thanks, but let me rephrase my question (English is not my native language, sorry).

1. All brookers use different time zones.
2. So it means that on a 4h chart, the time of open of a candle may vary between brookers by a few hours, right?
3. But for 1h TF, I guess that all brooker start the open of a candle at about the same time. Is this correct?

Thanks!

OK, stop.

1. All brookers use different time zones.

[B]Wrong[/B]. All [B]traders[/B] use different time zones. To be precise UK traders use their time zone, traders from US their own country’s time zone etc.

2. So it means that on a 4h chart, the time of open of a candle may vary between brookers by a few hours, right?

[B]Wrong[/B]. A 4h chart’s candles/lines are: 00:00, 04:00, 08:00 and so on, no matter what time zone you are in. Except on change to DST time twice a year, one week each.

3. But for 1h TF, I guess that all brooker start the open of a candle at about the same time. Is this correct?

[B]Correct.[/B] So what?

What you are into is of absolute no importance, supposing we are talking about trading. Unless you have a date or something.

Cheers!

[thomaas]

Thanks a lot for your answer! I’m not saying this is something important, I’m just trying to understand how it works.

[B]Wrong[/B]. A 4h chart’s candles/lines are: 00:00, 04:00, 08:00 and so on, no matter what time zone you are in. Except on change to DST time twice a year, one week each.

Are your sure about this? Because someone told me that because of the timezone difference, 2 different traders may see the opening of a new candle at different prices on a 4h TF (but not on a 1h TF).

[daydreamer65]

Thanks a lot for your answer! I’m not saying this is something important, I’m just trying to understand how it works.

Are your sure about this? Because someone told me that because of the timezone difference, 2 different traders may see the opening of a new candle at different prices on a 4h TF (but not on a 1h TF).

Up to and including the 1H candle will be the same, if the brokers have the same price feed.
However there will be variations in spread.

The differences occur in the 4H & Daily candles because there is a variation in the close
of the candles due to where in the world the server for the price feed is located.

What you need to look for is a chart with a NY close for the Daily chart.

[thomaas]

Up to and including the 1H candle will be the same, if the brokers have the same price feed.
However there will be variations in spread.

The differences occur in the 4H & Daily candles because there is a variation in the close
of the candles due to where in the world the server for the price feed is located.

What you need to look for is a chart with a NY close for the Daily chart.

That’s exactly what I thought. thanks a lot!