Do you Believe in 4 hr/Daily bars? - Page 3
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Thread: Do you Believe in 4 hr/Daily bars?

  1. #21
    Based on London Time:
    07:00 Start European Session
    13:00 Start American Session
    17:00 Close European Session
    23:00 Close American Session
    23:00 Open Asian Session
    07:00 Close Asian Session

    Clearly Know about daylight saving.

  2. #22
    You failed to mention GMT in your instances (for anyone who didnt know the session times).

  3. #23
    Hey mate,

    This really is a very good question and one which many men and women tend to neglect when utilizing candlesticks in the FX market. What seperates the FX market from the rest of the markets outside there's that it runs 24 hours a day, so there is no actual open and close. Japanese candlesticks were created to study the behaviour of market participants. Watch the theory is that the more absurd money, or'dumb money' is reflected at the open price, and also the rational money, or'smart money', is reflected at the final price. Also, the final price will represent the price at which market participants are eager to take the extra risk of holding the position overnight, which divides them to the position for a period of time. Therefore, to me it appears that the plogical facet behind candlestick study is somewhat missing in the FX market, except at the weekly candles.

    As other people have metioned in this thread, 4 hour candlesticks (for example) started on any hour will nonetheless show concepts like rejection, but I feel it's better to zoom into the smaller time frames to have a better look at the actual picture.

    As far as daily candles move in the FX market, I feel a switch point at 5pm NYT holds the best plogical value as this is widely regarded as the end of the FX trading evening. NY is the previous session of the day and it's when all of the big US banks are closed up shop, balancing there books and transferring money to where they want it to be overnight.

    The one hour candles may also be usefull as a plogical indior, as people naturally tend to devide their times into sections, and 1 hour is a natural devide which makes sense to a lot of people. You'll observe that there is often a large move in the past couple of minutes or seconds of the hour, as people position themselves to another'section' of the day.

    There is another factor to consider however that does add to the validity of many different candles, which is that trading is a self fullfilling prophecy. Because of this, I will often look at 5m, 15m, 1h, 4h (deviding the afternoon from 5pm NYT or midnight GMT) and dailys (again, possibly 5pm NY or midnight GMT). As far as 4h and dailys go however, I will generally only give weight to people that create the identical pattern in both the 5pm NYT and the midnight GMT devide.

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