ForexEzy
No Result
View All Result
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
No Result
View All Result
ForexEzy
No Result
View All Result
Home Forex Education Forex Trading Strategies

New York Close Charts in Forex – Why Are They Important for Daily Time-Frame Price Action?

by Adam Stanley
March 19, 2021
in Forex Trading Strategies
0
New York Close Charts in Forex – Why Are They Important for Daily Time-Frame Price Action?
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

Trading forex is a game of fine margins. Any trader seeks to find clarity in their technical analysis. Interestingly, the data on forex charts is not exactly the same across the board due to the different data feeds that brokers receive.

The most common type of chart is the New York close (referred to as such because the daily candle closes at 5 p.m. EST, the end of the New York session), which is the preferred choice. This is also the one used by a vast majority of brokers. 

The other kind of chart (though not very common) is the GMT close (Greenwich Meridian Time) that contains six daily candles instead of five that represent the equivalent days of the forex week.

There are some slight nuances between the two that, while they may seem insignificant, have a bearing in how daily time-frame traders (particularly if they are using price action) analyze the markets.

Understanding the opening and closing times of the forex market

One of the advantages of forex over other instruments is its 24/5 around-the-clock nature. To retail traders, the markets are open for five full days and closed on weekends. 

The general opening time for forex is 5 p.m. EST (Eastern Standard Time), and the closing is 5 p.m. EST on Friday (slight variances exist during Daylight Savings Time). 

Brokers have access to two primary price feeds, ones that use a GMT close and the New York or 5 p.m. EST close, the latter of which is the better option. Though the majority of brokers offer the New York close charts, there is still a handful that doesn’t. 

The GMT close charting reflects six daily candles instead of five (since forex is primarily open for five full days), the sixth of which is referred to as a ‘Sunday bar’ or ‘Sunday candle.’ For the most part, these are insignificant as very little action generally occurs during this period, meaning they can provide a less clear picture than the New York close.

The difference between a GMT close and a New York close chart

With New York close charts, the Sunday bars may reflect as gaps (which don’t happen frequently). However, the key reason why New York close charting is significantly better is for convenience and providing more streamlined price action.

The difference between a GMT close and a New York close chart

Let’s look at the image above. Despite both charts reflecting the same data, the New York close version provides ‘cleaner’ price action than its counterpart. We should bear in mind this is only a snippet. 

When observing a larger chart with added data, on the GMT close, we’ll see significantly more candles that generally don’t provide any real meaning (usually dojis and or similar strange candles reflecting thin liquidity).

These charting differences matter more for traders exclusively analyzing the daily time-frames and who also use some form of price action.

Their rationale in the first place is to view less noisy charts and see the real market sentiment. If they included the Sunday bars, they would reflect more ‘clutter.’ Furthermore, probably the most important time in the market is during the New York session because it’s the busiest time when many forex transactions occur.

We regularly see trend resumption and price breaking out of extended ranges during this period. The closing price of this session is regarded as one of the most substantial because it affirms the dominant force between buyers and sellers, and it is also a confirmation of specific price action signals or patterns.

How the different charts affect moving average

With a GMT close chart, while all the five daily candles are going to be 24 hours in length, the ‘Sunday bar’ is usually about two. When using indicators like the 20-day moving average, the settings assume that each daily candle covers 24 hours. 

With a so-called sixth one that is only a fraction of the time, the indicator will look stranger than it should be on a GMT close chart.

Is there a way of knowing whether a broker provides New York close charts?

With any trading platform, there usually is no way of knowing beforehand until one opens a demo account with a specific broker. Whether one is a new or experienced trader, this feature should be one of the first things to check. 

Also, no one can adjust the closing time of their charts since these are predetermined from the feed the broker receives externally.

Final word

Analyzing New York close charts doesn’t offer traders a considerable advantage or edge over others. GMT close charts have a higher chance of providing ‘false signals’ for those trading the daily time-frame with price action primarily since there is a lot more diluted data to analyze, even though the price is the same as with the New York close.

Traders that spend most of their time viewing time-frames lower (4-hour, 1-hour, 30 minutes, 15 minutes, 5 minutes, 1 minute) or higher than the daily (weekly, monthly) won’t be affected by this attribute. Additionally, this issue is not so prevalent nowadays because most brokers have adjusted. 

Though this article only highlights that there may be some that haven’t, something that traders have to consider. Nonetheless, for swing traders that exclusively trade the daily time-frame, the aim is to have a more precise chart reflecting more closely the real opening and closing markets of forex without any unnecessary candles that may cloud analysis.

The Best Forex Robots Report Is Already Here!
Check out 30+ best expert advisors with daily updated live results and statistics.
ShareTweet
Previous Post

Major US Indices Struggling to Bounce Back as Oil Prices Edge Higher and Gold Plummets

Next Post

Dollar Weakens on Rate Hikes Doubts as Focus Shifts to BOE and BOJ

Related Posts

KeyDifferences Between the Simple and Exponential Moving Averages

KeyDifferences Between the Simple and Exponential Moving Averages

by Chintan Patel
April 18, 2022
0

Moving Averages (MAs) are often the first indicator introduced to a newbie in any financial market. They remain the bread-and-butter...

Best Strategies for Trading the Japanese Yen USDJPY

Best Strategies for Trading the Japanese Yen USDJPY

by Adam Stanley
April 6, 2022
0

The Japanese yen is one of the most popular currencies globally because of the position of the country’s economy. Japan...

Best Strategies for Trading the Swiss Franc USDCHF

Best Strategies for Trading the Swiss Franc USDCHF

by Chintan Patel
April 4, 2022
0

The Swiss franc is a popular currency around the world today. It is often viewed as a safe-haven currency because...

How to trade using Larry Connor

How To Make Money Using 2-Period RSI Strategy

by Adam Stanley
February 16, 2022
0

2-Period RSI strategy is a common trading strategy that traders and forex expert advisors leverage to squeeze profits while trading...

How to Use Hedging Strategy in Forex vs. Crypto

How to Use Hedging Strategy in Forex vs. Crypto

by Richard Brase
February 1, 2022
0

Hedging is an important concept in the financial market. It is so important that an entire industry known as hedge...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Best Forex Automated Systems

  • TechBerry 9/10
  • Happy Galaxy 8.5/10
  • Forex Cyborg 8.5/10
  • Forex Fury 8/10
  • FXgoodway 7.5/10

Best Crypto Bots

  • Bitsgap 9/10
  • Cryptohopper 8.5/10
  • Pionex 7.5/10

Top Trading Markets

We are dedicated to demystify the world of forex trading for you – no matter what level you are on.

Categories
  • Automated Trading
  • Cryptocurrency Trading
  • Day Trading
  • Forex Basics
  • Forex Brokers
  • Forex Education
  • Forex Forecasts
  • Forex Indicators
  • Forex Market Commentary
  • Forex Robots
  • Forex Signals
  • Forex Tools
  • Forex Trading Strategies
  • Forex VPS
  • Fundamental Analysis
  • Managed Accounts
  • Money Management
  • News
  • Risk Management
  • Social Trading
  • Technical Analysis
  • Top World Traders
  • Trading Apps
  • Trading Psychology
  • Uncategorized
Tags
arbitrage atr Avalanche AVAX Coin bollinger bands cci chart patterns classics copy trading courses Crypto day trading forex brokers forex charts forex ea forex education forex forecasting Forex Indicators forex software reviews grid trading hedging ichimoku macd market cycles news trading oscillators Polkadot price action trading rsi social trading SOL Solana strategies tips & tricks trading bots trading platforms trend trading Video
  • Terms of Use
  • Privacy Policy
  • Compensation Disclosure
  • Risk Disclosure
  • About Us
  • Contact Us

Copyright © 2022 by ForexEzy.com

No Result
View All Result
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts

© 2022, Forexezy.