Trading on D1 and H4 time frames
If you trade on D1 and H4 timeframes, you should be careful. The fact is that the time on the terminals of different forex brokers may differ. For H1 and smaller timeframes, this doesn't matter much, but D1 and H4 charts will look different depending on when the candlesticks open and close. It's all because of different time zones.
Consider this as an example: the same time interval can be displayed differently on the charts of brokers with different time zones. Let's look at the daily charts:
Broker 1 (time in terminal GMT+2):
Broker 2 (time in terminal GMT):
As you can see, there are differences in the graphs, although they are insignificant. The question arises: what consequences does this lead to and what time is considered "correct"?
Incorrect open/close timing of daily (and 4-hour) candles can distort indicator readings and make it difficult to analyze candlestick patterns and chart patterns. This, in turn, leads to erroneous entry and exit decisions, which affects trading results.
What is the best time for a broker to analyze daily charts? The answer is simple: the closing of the D1 candle should coincide with the end of the New York session.
It is also worth noting that some brokers may have 6 daily candles per week on their charts (one candle for Saturday). This is also unacceptable because it distorts technical analysis signals.
You can also use our schedule of trading sessions.