Ben Carter
The closing time of 4-hour candles in Forex is determined by the trader's session and time zone. For example, in the New York session (8 AM-5 PM Eastern Time), 4-hour candles close at noon, 4 PM, 8 PM, and midnight. However, the London session, which operates in a different time zone, will have different closing times for its 4-hour candles. The closing times of these candles are important for traders making decisions about entering or exiting trades. While there is no standard 4-hour candle open or close, some traders suggest that 5 PM EST (New York close) is the best time for a daily close/open, which would correspond to specific 4-hour candle close times.
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What You'll Learn
The closing time depends on the trader's time zone
The closing time of 4-hour candles depends on the trader's time zone and the trading platform they are using. Forex, for example, is a global market that operates 24/7, but it is divided into different sessions, each with its own unique opening and closing times. The New York session, for instance, opens at 8 AM Eastern Time and closes at 5 PM Eastern Time. Therefore, the 4-hour candles for this session will close at 12 PM, 4 PM, 8 PM, and so on. On the other hand, the London session opens at 3 AM Eastern Time and closes at 12 PM Eastern Time, so the 4-hour candles for this session will close at 7 AM, 11 AM, 3 PM, and so on.
The time zone and session a trader uses are important factors in determining the closing time of 4-hour candles. It is recommended that traders choose a platform that suits their location, as daily candles may not differ significantly from each other. For example, traders based in the US might prefer to use the New York session, while those in Canada might opt for the London or Tokyo sessions.
In addition to time zones and sessions, the choice of trading platform can also affect the closing time of 4-hour candles. Different platforms may have varying open and close times for their 4-hour candles. For instance, Think or Swim (TOS), a charting platform, has 4-hour candle open and close times that differ by 2 hours from those of Trading View. TOS's 4-hour candles cover the periods from 8 AM to 12 PM and from 12 PM to 4 PM, while Trading View's 4-hour candles cover the periods from 6 AM to 10 AM, 10 AM to 2 PM, 2 PM to 6 PM, and so forth.
Traders should be mindful of these variations in candle closing times across time zones, sessions, and platforms. These differences can impact trading decisions, such as entering or exiting a trade. For instance, a trader might decide to enter a long position if a 4-hour candle closes above a resistance level, anticipating further price increases. Conversely, if a candle closes below a support level, they may opt for a short position, expecting the price to continue falling.
To make informed decisions, traders should be aware of the specific time zone, session, and platform they are using, as these factors influence the closing time of 4-hour candles. By understanding these variables, traders can leverage the information provided by candlestick charts to analyze the market and make strategic choices.
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There is no standard 4-hour candle open/close
The lack of a standard 4-hour candle open/close time can be confusing for traders, especially those who use multiple platforms or brokers. Some traders have expressed frustration with the discrepancy between the market close and the 4-hour candle close on certain platforms, such as Trading View. For example, the market may close at 4:00 PM, but a 4-hour candle on Trading View may only close at 6:00 PM, leading to inconsistencies in data and difficulties in making informed trading decisions.
To address this issue, some traders have suggested that platforms should provide the option to adjust the open and close times of candles to match other platforms or the market open and close times more accurately. This would allow traders to standardize their data and make more informed decisions, especially when using multiple platforms or working with different brokers.
It is worth noting that daily candles are recalibrated to the start of each local session. For example, the daily EURUSD candle is recalibrated to the Tokyo Open Time, London Open Time, or New York Open Time, depending on the session. This recalibration ensures that the daily candles reflect the price action during the active trading sessions for that particular currency pair.
Ultimately, the choice of the best 4-hour candle open and close times depends on the trader's location, preferred trading sessions, and strategies. While there is no universal standard, traders can choose the open and close times that align with their trading goals and risk management strategies.
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4-hour candles are used to identify trends and price patterns
There does not seem to be a standard open and close time for 4-hour candles. On TradingView, for example, the 4-hour candle timings are 6am-10am, 10am-2pm, 2pm-6pm, 6pm-10pm, 10pm-2am, and 2am-6am. However, on Think or Swim, the timings are 8am-12noon and 12noon-4pm.
Candlestick patterns are used to predict the future direction of price movement and identify trading opportunities. They are a way of displaying information about an asset's price movement. Candlestick charts are one of the most popular components of technical analysis, enabling traders to interpret price information quickly and from just a few price bars.
Candlestick patterns fall into broad categories that signal potential market movements. Bullish reversal patterns indicate a shift from downward to upward momentum, while bearish reversals signal a switch from upward to downward momentum. Continuation patterns suggest the prior trend is likely to persist, and indecision patterns demonstrate a struggle between buyers and sellers and often precede trend reversals.
The bullish harami candlestick pattern, for example, is a two-candle pattern. It is characterised by the formation of a small body (green) candle before a larger body (red) candle. This pattern typically occurs at the bottom of the chart and indicates a potential reversal of a bearish trend towards the bullish side.
The 4-hour timeframe is particularly effective for swing trading, with a success rate of 70% in identifying profitable trade setups. The daily or weekly charts work well for position trading. Traders should experiment with various time frames and find the ones that fit their trading plan.
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4-hour candles are used to make trading decisions
The 4-hour candle close is an important reference point for traders, especially those trading on a shorter time frame. While there is no standard 4-hour candle open or close, traders can use the New York session close at 5 pm Eastern Time as a reference point for their trading decisions. This means that 4-hour candles close at 5 am, 9 am, 1 pm, 5 pm, 9 pm, and 1 am Eastern Time.
Using the 4-hour time frame offers several advantages for traders. Firstly, it provides a balance between speed and volume. While slower than lower time frames, it still offers sufficient volume within each candle to identify profitable trade setups. This makes it particularly effective for swing trading, as highlighted in the "Swing Trading Market Analysis Report" by the International Financial Markets Association (IFMA), which found a 70% success rate for this strategy.
The 4-hour time frame also allows traders to slow down and analyse markets without being overwhelmed by excessive data. This additional time provides opportunities to make informed trading decisions and manage risk effectively. Traders can use the close of each 4-hour candle as a trigger to adjust their stops and limits, helping to avoid knee-jerk reactions and enforcing a favourable risk-reward ratio.
Additionally, the 4-hour time frame can offer hints about potential market directions. By observing price movements and trends within this time frame, traders can identify uptrends and downtrends, buying or selling accordingly. This approach is particularly useful for intraday traders and swing traders, who can capitalise on short-term price fluctuations and trends.
While the 4-hour time frame has its benefits, it is important to note that it may not be suitable for all traders or trading strategies. The daily time frame, for example, is often favoured due to its higher trading volume and more reliable signals. Traders are advised to experiment with different time frames to determine which ones align with their trading plans and goals.
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The New York session's 4-hour candle closes
The New York session for Forex trading opens at 8:00 AM Eastern Time (ET) and closes at 5:00 PM ET. This session is considered the most active period for trading in the Forex market, as it overlaps with the European session and the end of the Asian session.
During the New York session, the 4-hour candle closes at four set times throughout the day. These closing times are 12:00 PM ET, 4:00 PM ET, 8:00 PM ET, and 12:00 AM ET. Each 4-hour candle represents a specific time frame, with the first candle covering the period from 8:00 AM to 12:00 PM ET, the second candle from 12:00 PM to 4:00 PM ET, and so on.
Traders closely monitor these 4-hour candles as they provide valuable insights into the market's behaviour. The candlesticks visualise the open, close, high, and low prices of a currency pair during the specified time frame. This information helps traders identify trends, support and resistance levels, and potential price reversals, enabling them to make informed trading decisions.
It is worth noting that the closing times of 4-hour candles can vary slightly across different trading platforms and brokers. Some sources suggest that the 4-hour candle for the New York session should close at 5:00 PM ET, coinciding with the end of the trading day. However, other platforms may have different open and close times for these candles, leading to discrepancies in the analysis.
To standardise their analysis, traders should be aware of the time zone they are located in and the corresponding Greenwich Mean Time (GMT). For example, if a trader is in New York, they operate in the Eastern Time Zone (ET), which is five hours behind GMT. Understanding these time differences is crucial, especially when trading across different global markets, such as the London or Tokyo sessions.
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Frequently asked questions
The closing time of 4-hour candles in Forex depends on the trader's time zone and session. For example, if a trader is using the New York session, which is from 8:00 AM to 5:00 PM EST, the 4-hour candles will close at 12:00 PM, 4:00 PM, and 8:00 PM EST.
4-hour candles are used by Forex traders to identify trends, support and resistance levels, and potential price reversals. They are also used to identify price patterns, such as head and shoulders, double tops, and triangles.
There is no standard open or close time for 4-hour candles across different trading platforms. The open and close times depend on the time zone settings and the specific session being traded.
Daily pivot points calculated using GMT or New York close tend to yield similar results. However, the choice of time zone depends on factors such as liquidity and the trader's location.
