Important information for trading on daily charts
Hello dear blog readers. I advise you to take the information below seriously - if you trade on daily or 4-hour charts, it can significantly affect the success of your forex trading. Regardless of strategy.
The fact is that the time on the clock in the terminal varies for different forex brokers. For charts with a period of 1 hour and below, this does not matter, but daily and 4-hour charts will look different, depending on the time of opening and closing of candles.
Let's look at an example - the same time period, but on the charts of forex brokers with different time zones. Daily Charts:
Alpari (time in the terminal GMT + 2):
InterbankFx (time in the GMT terminal):
As you can see, the graphs are not so significant, but they differ. What does this lead to and with what time is the “correct” graph?
“Incorrect” opening / closing time of daylight (and 4-hour candles) leads to a distortion of the indicators, and also worsens the interpretation of candlestick patterns and figures of graphical analysis. And this leads to inappropriate entries / exits from transactions and, therefore, poor results.
So what should be the time for a broker to give us the most correct chart for analyzing daily candles? The answer is simple and, if you think about it, is obvious: the closing time of the day candle should coincide with the closing time of the New York session (2 a.m. Moscow time in winter and one in the morning in the summer). Those. we need a broker with time in the terminal GMT + 2 in winter and GMT + 3 in the summer(do not forget that although Russia has refused to change the clock, the transition to winter time is still underway in Europe and America).
The above requirements, as well as the availability of adequate trading conditions, correspond to 2 brokers:
- Alpari (here I trade myself)
In addition, some companies have 6 daily candles per week on the charts (one of the candles is Saturday). This also should not be so that, again, the signals of technical analysis are not distorted.