HI,
I see that the close of 4h candles is different according to the Broker.But which one should I trust? In my trading system the 4h candle play an important role.
For example I see a reversal candle in the first broker which is not in the second broker?
one of the broker is FXCM and the other one is IFC.
Thanks
Not sure of IFC but FXCM has pretty accurate charts from what I have seen.
If youâre having to depend on the broker for your system to âworkâ then I would seriously consider if this system is any good.
Honestly I kind of agree with purplepatch on this. I will state that my charts had better be correct as far as price and time. However thats not going to affect my system just what broker I decide to use.
I exactly know what you mean. Try different brokers to see which one makes the most sense. Plus, your the only person that knows every detail of your system.
I donât use either broker but Iâm guessing that they run on different timezones. For example, my brokerâs charts are based on Central European Time. A 4hr candle that runs from midnight to 4am on my chart will look different from one that appears on a chart based on Eastern Standard Time for example. The price movement within âmyâ 4 hour period will not be the same as the price movement within âtheirâ 4 hour period.
So actually, both charts are accurate. I guess the question is, does that make any difference? I donât think so, but I would value othersâ input. Letâs say for example that youâre looking for a pinbar. The pinbar is a result of the price movement within that 4 period, so if it forms, itâs surely valid whatever the time zone. Itâs just that some charts will show it and others wonât.
Unless someone will argue that the price movement AFTER the pinbar appears is partly the result of trading triggered by its appearance. In which case, the time zone chart that most traders use would be the one youâd want to be looking at.
Me personally I like my charts on EST. I guess though you would get different but still valid setups in any timezone thats has a major financial center in that timezone.
which timezone do you think gives me more valid 4H candle setups?
This is a question that has come up repeatedly in our trading group: if different TZ brokers have different 4H candles, how can we know when a pin bar or inside bar or some other pattern is âcorrectâ? Trading off the 4H is becoming increasingly more desirable to me, but I have to wonder whether there is a universally recognized standard for which TZ is observed by most traders when it comes to 4H charts.
Post #3 already answered the question. I was just about to say the same thing.
No, it didnât, actually.
This has been an issue of mine for a number of years and I have spoken to many senior analysts about it. I am amazed at how many experienced traders simply accept the âpictureâ (chart) with out knowing its purpose or origin.
The response I get from the likes of Darryl Guppy is to simply trade the chart you see. OKâŚeasy to say but for mine it defeats the purpose of technical analysis. Take any TA set up or candle formation. The question to be asked is what created it? The answer of course is buyers and sellers of ârealâ currency through the inter banks. The charting programs we use are simply mirrors of the actual data. So if we wish to analyse what the buyers and sellers of the real currency are doing we need to know the times on the charts they use. I am yet to work that one out to my satisfaction. Most change only during the British summer because of their daylight savings so we have 5 months of different opening times for different charts. We use charts to attempt to determine âcrowdâ behaviour otherwise it is simply trading off pretty pictures because an indicator told me to. Have a look at the opening of the aud/usd on the 7th May 2012. Does your chart show a lovely hammer? Mine did and I traded it to close the gap. Very nice trade. I was using IG Markets and the advanced charts which is the charts provided by IT Finance. The silly thing is that these charts are actually the ones that open an hour late now because of daylight savings in Britain. So to be honest they are not what the true currency traders would be viewing so why did the price go up after the hammer? Luck? Remember it is not us, the traders on the mirror markets that drives the prices in the currencies in one direction or another the same as when we use leverage via a CFD we are not actually making any of difference to the real instruments price.
So my question is how is the real price of the real currencies moved? We know there are real currency traders but are they using charts or purely fundamentals to make their buying and selling decisions? You can bet that they are using a combination of both so to improve our chances we need to be viewing the charts they are viewing I would think or at least be looking at ones that open and close at the same time.
What we do know is that two charts with differing open and closing times cannot both be right. They may an accurate reflection of their own opening times but no matter how many of us buy or sell based on that chart we canât move the price. The real price that these charts follow is moved by the ârealâ currency dealers so if we can a) determine if they are following charts and b) what time those charts open and close we at least would have a chance of using accurate technical analysis from which to base our trading decisions. Otherwise we are simply taking a punt on a pretty picture that may or may not be what the people who actually move markets are viewing.
anyone know a real currency dealer?
I guess that this difference also applies to indicators.
Iâm looking at RSI (14) for EURGBP on Daily and thereâs a big difference between two european brokers (different server time).
On one it says 27.2 and on the other 22.2.
Iâm new to Forex and I donât know how the professionals do it.
I know a real currency dealer working on the Fx Desk of UBS. Handles large government and Instituinal clients (2-3$ billion daily). How can I put it nicelyâŚwithout exaguratingâŚhe knows a lot less than any one here 
âŚseriously âŚThey dont trade like you think, they trade on inside information they hear from each other and do a lot of âfrontingâ. Only us mortals need analysis to try and make a buck. Sad but true!
The best option we have at our disposal is to watch the price! This free indicator helps me pinpoint trading sessions and thus the price movement I can expect. It is called Market Profile and can be found at mt4appstore.com
Wanted to ask the same question, then I saw this thread. It basically tells us that one candle on its own means nothing. It needs at least one before and after to have any significant meaning. In which case, no matter when it opens and closes, group of 3 candles will convey the same message, just in a different shape. Also regarding a candle closing above or below âresistance/supportâ, if we take that it is area and not just a line, then its not very common that one candle stretch that long. And definition (or confirmation) of broken âresistance/supportâ would be that a price breaks over/bellow it and stays there for some time. Probably similar story is with indicators. If RSI at exactly 70, or maybe 68, or 72, has very little meaning.
But I agree that it is enoying having that short Sunday candle, which if you look at it on its own you would generally interprete it as an indecision candle
I think none of the answers have satisfied the person who asked the question. I think he wants to ask if you open any 4h chart like gold xauusd of oanda. The 4h candle open time will be 1am NY Eastern Time. Next candle time will be 5am NY ET. On the other hand other if you open 4h gold xauusd chart of forexcom then there will be 4h candle open time 2am NY ET and next candle time will be 6am NY ET. In that manner all the brokers are divided by 1 hour time difference. This 1 hour changes the shape of 4h candles on both groups. Why is that difference? If you open two world top brokers there will be 1 hour difference in same timezone. So which one is correct.
I have noticed that too but in a couple of exchanges, when I looked into it, it was because of the time zones.
Intraday time-frames have no relation to the marketâs operation. A trader might decide to use a 3 hour 13 minutes candlestick chart, another night use 4 hours 21 minutes, it doesnât matter.
The chart is only a summarisation of the behaviour of what the market has done, itâs not DNA evidence. The chart is of more application as a roadmap corresponding with the traderâs strategy