Forex trading is a popular market, where currency pairs are traded for profit. The forex market is open 24 hours a day, five days a week, and traders use a variety of techniques to predict the movement of currency prices. One of the most popular methods is to use 4-hour forex candles. These candles are used to identify trends in the market and make predictions about future price movements. But when do 4-hour forex candles form?
First, it is important to understand what a forex candle is. A forex candle is a graphical representation of a price movement of a currency pair. Each candle represents a specific time period, usually one hour, four hours, or one day. The candle is made up of a body and two wicks. The body represents the opening and closing price of the currency pair, while the wicks represent the high and low prices during the time period.
Now, let’s look at when 4-hour forex candles form. A 4-hour forex candle forms every four hours, starting at the beginning of the forex market session. The forex market session starts on Sunday at 5:00 PM EST and ends on Friday at 5:00 PM EST. During this time, the forex market is open 24 hours a day, five days a week. Therefore, a new 4-hour candle forms every four hours, starting at 5:00 PM EST on Sunday.
The formation of 4-hour forex candles is influenced by a variety of factors, including market volatility, news events, and economic indicators. Market volatility refers to the level of price fluctuation in the forex market. When the market is volatile, 4-hour forex candles can form more quickly, as price movements are more frequent. Conversely, when the market is calm, 4-hour forex candles can take longer to form, as price movements are less frequent.
News events and economic indicators can also influence the formation of 4-hour forex candles. These events can cause sudden price movements, which can lead to the formation of new candles. For example, if a major economic report is released that shows a significant change in a country’s economic data, the currency pair associated with that country may experience a sudden price movement, which could lead to the formation of a new 4-hour forex candle.
Traders use 4-hour forex candles to identify trends in the market and make predictions about future price movements. By analyzing the length and color of the candles, traders can determine whether the market is trending up or down. A long green candle indicates that the market is trending up, while a long red candle indicates that the market is trending down. Traders can also use 4-hour forex candles to identify support and resistance levels, which can help them make trading decisions.
In conclusion, 4-hour forex candles form every four hours, starting at the beginning of the forex market session. The formation of these candles is influenced by a variety of factors, including market volatility, news events, and economic indicators. Traders use 4-hour forex candles to identify trends in the market and make predictions about future price movements. By analyzing the length and color of the candles, traders can determine whether the market is trending up or down, and make informed trading decisions.
