DislikedHi Kevin,
Whilst it is true that bar open/close time makes less of a difference to PPZs than to bar/candle formation, it can still make a difference since you see PPZs based upon the high/low of bars (or based upon the close if you use line charts to draw your PPZs).
The high/low of a bar depends upon the time it opened/closed. If my 4hr chart is +1 or +2 or +3 hrs out of synch with your, this can alter not just whether we both see a Pin or other formation, but also (to a degree) where we draw in the centre of our PPZs unless we then go down to the 1Hr chart and look for them in that.
Well this is what i find anyway,
IanIgnored
Look at the low to which I have drawn my Fibs. Then you can see another low 3 bars to the right (actually 1 pip higher - but I'm not that fussy). OK, for most 4hr charts those two lows would be in different 4Hr bars and thus show Support - right?
But they are only 3 bars apart, so could both be in the same 4Hr bar - so then it is not support ('cause you need at least 2 hits for S or R) right?
Now look at the 2 consecutive Pin Bars (ignore that they are are not in a good position - assume that they were in a better position i.e a high). In 3 out of 4 4Hr charts they would just show as 1 bar reaching a high and retreating, but in 1 out of 4 4hr charts they would show as 2 consecutive bars reaching a high and then retreating - so we have Resistance - right?
This is why I skip over looking for S/R on 4Hr charts and drop straight from Daily down to 1 Hr. Everyone's next 1Hr (well nearly - somebody told me that South Africa are awkward) begin and end at the same universal time.
There is nothing magical about S/R , PPZs and PA. They work because so many people see them. The trouble is that on a 4Hr chart, not everyone can see them. Which is one reason why some people use Candle Aggregators or have multiple price feeds.
I hope that this clarifies (or muddies) things,
Ian
Attached Image (click to enlarge)
