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Does It Really Matter?
Beside the small "Sunday" candles that clutter the chart and create fake signals, the particular closing prices of GMT charts are not showing the real picture of the market sentiment.
That's why I encourage you to try them, especially if you are serious about price-action trading. As you can see, the New York Close chart has no unnecessary "Sunday" candles which can confuse traders. Notice the small candles in red on the left GMT chart.
If you rely on candlestick patterns in your trading, GMT charts would generate a lot of fake signals which could ultimately cost you a lot of money. There are a lot of dojis and other candlesticks with small bodies, due to the small time-frame that they represent only one hour after the Tokyo session opens.
The New York Close chart, on the other hand, represents exactly the New York session trading day, which is extremely important for price-action trading. Closing prices are the most important prices for any market, not just forex.
To make the right trading decisions, you need to make sure that you have the right price feed. While a nice pinbar candlestick forms on the NY Close chart, which triggers a profitable short position afterwards, there is nothing similar on the GMT chart. Even more, the "Sunday" candles dilute traders' attention and can give costly "fake signals", i. If you don't know which charts your broker uses, the easiest way to find out is by watching when the daily candle closes. If the time is different from 5: Once you switch to New York Close charts, you will immediately feel the difference while just looking at the chart — it's more compact, has 5 daily candles during a week, and you know that each candle's closing price represents the close of the New York session at 5: I find it now much easier to discover profitable trading patterns while looking at the New York Close charts.
If you want to become a professional price-action trader, one of the most important things is to start from the foundation — which are the charts. You want compact and clean charts, which truly represent the fight between the bulls and the bears. This material is written for educational purposes only. Case in point, open up a new order tab in MT4 to execute a pending order. Here is the window below;. We are talking 2 steps instead of 3, which when you are trading intra-day , could mean a big difference in execution and getting your price.
But also notice which one is more confusing. But for those trading any significant size, or any intra-day price action strategies , execution is critical, and seconds can mean getting your price or missing it. Trade History On the Charts One other feature I really enjoy about the TS2 platform is it shows the trades or trade history you made in the last 24hrs on the chart, particularly your entry and exit levels.
When I close the trade, the TS2 charts Marketscope , will actually show me the entry and exit level on the charts. A good example is below;. But with MT4, these are not available. Once the trade is closed, the entry and exit levels on the chart are gone, which makes for more work.
When it comes to a trading platform, user friendliness is critical, and the more work you have to do to execute a trade, the more time and profits can be wasted. I hope this article now has conveyed to you 1 the New York Daily Forex Close Charts being superior is a myth, and 2 there is a far superior alternative platform for trading then MT4 which also uses the NY 5pm Close should you wish.
For those wanting to learn which pairs and price action systems are profitable in your server time, then make sure to check out my Price Action Course where you will learn which pairs, time frames, and systems are profitable across specific server times. I'm a verified profitable trader and trading mentor.
As a professional trader, I specialize in trading Price Action and the Ichimoku cloud. Trading financial instruments, including Stocks, Futures, Forex or Options on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you.
Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that your losses can exceed deposits and therefore you should not invest money you cannot afford to lose.
You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts. Past performance, whether actual or hypothetical, is not necessarily indicative of future results.
All depictions of trades whether by video or image are for illustrative purposes only and not a recommendation to buy or sell any particular financial instrument.