Using New York Close Forex Charts to properly trade the price action tactics that I teach my students is a very essential lesson, and one that you should take to heart immediately. If you're serious about your trade, you should pay great attention to what I'm about to say in this section... It will make a significant impact in your trading performance.
Allow me to explain why the New York Close Forex Charts are so critical...
Briefly stated, traders should be aware that the standard Forex charts provided by prominent forex brokers are, in my view, unsuitable for professional price action trading or any other sort of technical analysis. As a professional trader, you must guarantee that your forex charts open and shut in true alignment with the close of the New York stock exchange trading session (this is the real forex market daily closing time). In addition, instead of six daily bars each week, these charts should contain five. If you do this, you will be certain that you are seeing the proper price data, and you will be able to evaluate the exact same price action signals that I and all of my members see.
The next section will go into much more depth on this topic; however, if you don't want to read the full lesson, you can just download our favorite New York Close Forex Charting Platform by clicking here instead.
Simply said, the majority of forex brokers do not provide you with the most relevant or useful charts from which to make trading choices. For many new traders, the possibility that they are looking at charts that are not accurate does not even cross their minds until it is too late. Make no mistake about it: you must carefully examine this before engaging in live trading, and you will not find any information about it on other Forex trading education websites unless you ask for it.
The daily closure of the Forex market happens at 4:59:59 p.m. Next York time and indicates the conclusion of the current Forex trading day and the beginning of the new one, which occurs at 5 p.m. New York time when trading in New Zealand, Australia, and Asia gets begun. The New York close also symbolizes the conclusion of the New York session, which is the second busiest Forex trading session in the world.
Prices at the close of a trading session are the most crucial in any market because they indicate who won the war between bulls and bears for that particular session. In addition, as a price action trader who is focused on the daily chart, we must wait until the price action setup closes out on the daily chart before we can correctly identify it as a price action signal, and it is at the close of the daily chart that many significant price action setups form, as previously stated.
The fact that daily chart trading tactics are essential for all traders to learn means that we all want the most accurate and relevant closing price on the daily chart. Members of my trading community who want to trade the NY close 5-day charts must have the right NY close charting platform, since my price action tactics are based on the daily charts and all of my members utilize the correct NY close charting platform.
Not all MT4 (Metatrader4) platforms are created equal; in fact, most MT4 providers operate on GMT time and display six daily price bars, which is Extremely WRONG and will sometimes display "false signals," which may result in very serious consequences for traders. If you are not utilizing the right charts, you will not be able to follow my trade patterns or suggestions.
Please take note of all of the little Sunday bars on the non-New York close chart on the left. It is unnecessary to have these Sunday bars on the chart, and they are not significant; they just take up space and introduce superfluous variables to the chart, which will cause you to get confused and, in many cases, produce false signals. Although there are only 5 trading days per week in each major currency trading center throughout the globe, some platforms display a "Sunday" bar, which is erroneous and superfluous owing to the 24-hour nature of the Forex market...
For the charts and price action bar/candle formations to appear on your charts in the SAME way as my members and I do, you need utilize 'New York Close Charts on Meta Trader' with the appropriate data feed.
Had we been looking at a Non-New York close chart like the one on the right instead of the NY close chart on the left, we would have missed the approximately 200 pip move that followed from the pin bar reversal setup on the NY close chart...
Only a small number of brokers provide a real '5 Day Chart,' which includes the proper open and close shapes of the daily price bar at the top and bottom of the chart. To construct my Price Action Trading Signals, my members and I utilize a 5-day chart with a New York closing MT4 data server that is connected to the internet. Because New York Close Forex Charts are not used in this example, the trade setups and signals will not be the same.
I've had emails from traders who want to know whether they can "change" the platform time on their trading platform, and the answer is no, you cannot. The moment at which your daily bars close out is determined by the broker that provides the platform, and a broker either offers NY close 5-day charts or does not provide NY close 5-day charts.
While we cannot make any assurances, we have done our research and are working with a broker that provides the proper NY close 5-day charts and who is, in my opinion, respectable and dependable in their services. It is my recommendation that you choose a broker that has direct access to bank pricing and who runs a legitimate, regulated firm. Moreover, they feature the appropriate charts on a mobile dealing platform for your iPhone or mobile device. They also provide access to a broad range of other markets, including CFDs, commodities, and indices, among others.