Forex trading is an exciting and fast-paced industry that involves the buying and selling of currencies from around the world. One of the key tools used by traders to analyze price action in the forex market is the candlestick chart. These charts are made up of candlesticks that represent a specified time period. One question that frequently arises for traders is, “What time do forex 4 hr candles close?
The answer to this question depends on the time zone that the trader is located in. In the forex market, time is measured in Greenwich Mean Time (GMT). This is the time zone that the market operates in, and all trading activity is based on this time zone. However, traders around the world use different time zones to conduct their trading activities, depending on where they are located.
For example, if a trader is located in New York, they are on Eastern Standard Time (EST), which is 5 hours behind GMT. So, if a forex 4 hr candle closes at 4 pm GMT, it will close at 11 am EST. Similarly, if a trader is located in Tokyo, they are on Japan Standard Time (JST), which is 9 hours ahead of GMT. So, if a forex 4 hr candle closes at 4 pm GMT, it will close at 1 am JST.
It is important for traders to be aware of the time zone they are in and the corresponding GMT time, as this will affect their trading activities. For example, if a trader in New York wants to trade the London session, which begins at 3 am GMT and ends at 12 pm GMT, they will need to be awake and ready to trade during the overnight hours.
Another factor that traders need to consider is the daylight saving time changes that occur in some countries. These changes can affect the timing of the forex market and the closing times of candlesticks. For example, in the United States, daylight saving time begins on the second Sunday in March and ends on the first Sunday in November. During this time, the time difference between EST and GMT is reduced from 5 hours to 4 hours.
In conclusion, the closing time of forex 4 hr candles depends on the time zone that the trader is located in and the corresponding GMT time. Traders need to be aware of their time zone and the time differences between their time zone and GMT, as well as any daylight saving time changes that may affect the timing of the forex market. By understanding the timing of forex 4 hr candles, traders can make informed trading decisions and maximize their profitability in the forex market.
