Which 4 hours matters? | Forex Factory

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Which 4 hours matters?

  • #1
  • First Post: Nov 16, 2007 11:23pm Nov 16, 2007 11:23pm
I used to trade daily currency futures and more recently have focussed entirely on day trading index futures.

I'm looking at forex trading as an extra revenue stream and have come up against the old "which times should I use for pivots?" question in a different form.

The new one is when should my 4 hour bars start?
- should they start at midnight Frankfurt?
- should they start at midnight London?
- should they start at midnight NY?
- should they start at midnight Tokyo?

I would assume that they should start in the timezone that the most money is traded because that's the timezone that bar breaks will be be most important.

To assist anyone who'd like to suggest an answer I plan to trade EUR.JPY primarily along with EUR.USD but may also trade AUD.USD.
  • #2
  • Nov 17, 2007 12:37am Nov 17, 2007 12:37am
And the obvious other question. When should the day start when evaluating highs, lows, and closes against prior days?

These questions obviously impact on the formation of pinbars given that if someone in Oz sets their time wrong then they will see the world differently to someone in an important Currency Trading Nation.
  • #3
  • Nov 17, 2007 12:45am Nov 17, 2007 12:45am
I use the MT4 and my 4 hour started 1 hour before the Frankfurt before Daylight Savings time, now my candle starts at 1am E.S.T and that is the Frankfurt open.

This has always been a big problem while I trade along with a few other traders, finally we have all downloaded the same MT4 from the same broker.

I do use two sets of MT4 charting packages from different brokers that have the start at different times, I also use OANDA for smaller time frames when I am scalping, but usually the MT4 is a step ahead in it's movements.

Someday we can all be on the same candle times. LOL.
  • #4
  • Nov 17, 2007 7:59am Nov 17, 2007 7:59am
Hey guys

I think that the generaly accepted end/start time of the forex day is close of trading in NY (5pm New York time). Please correct me if I am wrong on this point.

With this in mind, I would assume that 5pm would be a good place to start the first bar. So the bars will open/close at 5pm, 9pm, 1am etc. Keep in mind that I have never used 4H PPs, so I can't tell you how effective this is.
  • #5
  • Nov 17, 2007 10:25am Nov 17, 2007 10:25am
I have been using the standard 12,4,8,12,4,8 and getting fine results. I am up about 1200 chart pips so far this month.
  • #6
  • Nov 17, 2007 10:59am Nov 17, 2007 10:59am
Quoting Agro
Hey guys

I think that the generaly accepted end/start time of the forex day is close of trading in NY (5pm New York time). Please correct me if I am wrong on this point.

With this in mind, I would assume that 5pm would be a good place to start the first bar. So the bars will open/close at 5pm, 9pm, 1am etc. Keep in mind that I have never used 4H PPs, so I can't tell you how effective this is.

Hi traders,

I use MT 4H charts with the first candle opening at the NY close (5PM).

I've seem good price action when a 4H candle closes confirming a breakout, confirming a reversal, or validating a trendline for instance.

Such behavior makes me believe that many speculators around the globe use 4H charts starting at 5pm NY time.
  • #7
  • Nov 17, 2007 4:56pm Nov 17, 2007 4:56pm
Thanks Lelio, drew, Agro, and Monarch. The attached represents my consensus times for the bars.

drew, what time is your 12 candle opening please?

Is anyone using a London time as the basis of the first bar? (And why please )
Attached Image
  • #8
  • Nov 17, 2007 5:07pm Nov 17, 2007 5:07pm
Quoting kiwi_trader
I'm looking at forex trading as an extra revenue stream and have come up against the old "which times should I use for pivots?" question in a different form.
As Agro mentioned, you'll want to use 5PM EST as the opening candle for your pivot calculations. That is the official start/end of the daily FX session.

If you're using MT4, be aware that the majority of brokers due not adhere to this standard with regards to their data feeds. Also, if you're using autopivot indicators, several have added a function for a GMT offset to compensate for data feed discrepancies.
  • #9
  • Nov 17, 2007 6:56pm Nov 17, 2007 6:56pm
Thanks KGB,

I use SierraChart with IB feed so IB's daily bars are close 5pm est open 5:15 est which fits well. SC lets you program some stuff so I've created background 4 hour bars that fit this timing and they give slightly cleaner signals than bars based on London midnight.

So unless some wise soul convinces me otherwise I am now on 5pm est for my multi-hour bars. I have also set my High Lows to this time.
  • #10
  • Nov 18, 2007 7:11am Nov 18, 2007 7:11am
Quoting kiwi_trader
Thanks Lelio, drew, Agro, and Monarch. The attached represents my consensus times for the bars.

drew, what time is your 12 candle opening please?

Is anyone using a London time as the basis of the first bar? (And why please )
12 midnight EST (New York).

The daily bars are 5 PM EST but I strictly use a 4 hour system.
  • #11
  • Nov 19, 2007 4:08pm Nov 19, 2007 4:08pm
Thanks guys.

Does anyone know if pro shops use four hour bars and if what times they set for?
  • #12
  • Apr 24, 2008 1:26am Apr 24, 2008 1:26am
Quoting kiwi_trader
Thanks KGB,

I use SierraChart with IB feed so IB's daily bars are close 5pm est open 5:15 est which fits well. SC lets you program some stuff so I've created background 4 hour bars that fit this timing and they give slightly cleaner signals than bars based on London midnight.

So unless some wise soul convinces me otherwise I am now on 5pm est for my multi-hour bars. I have also set my High Lows to this time.
Hi Kiwi,
Do you still use 5pm est as your 4H close?

Wgton. Kiwi.
Our IMAGINATION is the true holy grail!
  • #13
  • May 15, 2013 1:08am May 15, 2013 1:08am
does anyone know which broker starts their 4 hour candle at london open? thanks
  • #14
  • May 15, 2013 2:30am May 15, 2013 2:30am
Quoting nathaniel
does anyone know which broker starts their 4 hour candle at london open? thanks
You must look for brokers who have their server with the same UK DST.
MT4/MT5 EAs/Indicators/Alerts coder
  • #15
  • May 15, 2013 7:13am May 15, 2013 7:13am
Anyone who thinks it matters when your bar starts or ends doesn't fully understand price action or support and resistance.

It's only metatrader that is tied to your brokers time anyway....
tradewith60
  • #16
  • May 15, 2013 7:18am May 15, 2013 7:18am
Try 2 different H4 start time charts... compare 1 h4 against the other.... what difference is there in the information they are giving you?
tradewith60
  • #17
  • May 15, 2013 7:20am May 15, 2013 7:20am
Quoting 60minuteman
Anyone who thinks it matters when your bar starts or ends doesn't fully understand price action or support and resistance.
Quoting 60minuteman
Try 2 different H4 start time charts... compare 1 h4 against the other.... what difference is there in the information they are giving you?
The power of H4
MT4/MT5 EAs/Indicators/Alerts coder
  • #18
  • May 15, 2013 7:25am May 15, 2013 7:25am
Quoting FerruFx
{quote} {quote} The power of H4
mai oui...
tradewith60
  • #19
  • May 15, 2013 7:31am May 15, 2013 7:31am
Quoting kiwi_trader
And the obvious other question. When should the day start when evaluating highs, lows, and closes against prior days? These questions obviously impact on the formation of pinbars given that if someone in Oz sets their time wrong then they will see the world differently to someone in an important Currency Trading Nation.
The first thought that jumps into your head is that the bars will be massively different... well generally they're not, and on the whole the price action/sr information they are giving you is exactly the same

Here's a post off my H4 thread, 2 different brokers, 2 different start times... same information...

You should also notice that the price/sr that stops the move down is exactly the same...
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2013-05-15 at 13.30.41.png Size: 127 KB
tradewith60
  • #20
  • May 15, 2013 10:34am May 15, 2013 10:34am
Thanks for your reply

Well you are right that I may not fully understand price action and s&r.

i thought i knew in the past few years. but turns out what i know is actually very little compared to what traders here know. many incredible traders in this forum, and from the looks of it, you seem to be one of them.

the long and short is that i recently came across this guy called Cloggie, and he has been sharing about price action and s&r. he advocates open of h4 candle to take reference from london open. london trading session sees the most volume, afterall. it would be more accurate,to say the least, if we can take reference from london open

also, i'm experimenting on how the different settings of pivot point affects analysis of price action.

thoughts?
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