December Monthly Candlesticks Are Usually More Important
It is not the first time that I am praising the monthly time frame on this site:
- Monthly Time Frame Is the King September 27th, 2014
- Trading the Monthly Chart Is Lovely June 2nd, 2015
- Time To Check The Monthly Time Frame November 1st, 2015
- Monthly Time Frame Is Your Friend July 31st, 2016
And it won’t be the last time that I recommend you to follow the monthly time frame.
The reason is that the bigger and more liquid the currency market becomes, the more the shorter time frames will lose their importance and reliability. It is like when you grow bigger you pay less attention to the toys you were used to love. They lose their importance to you.
Markets are like that too. I remember the time that it was possible to trade the one hour chart as the only time frame and some traders were used to it. The candlestick signals and support/resistance breakouts really were used to work on one hour time frame. But it is a long time that you have to avoid such a short time frame.
Currency market is getting bigger and more liquid, not because more retail traders start trading the currencies, but because more money is being transferred in this market every day. Retail traders can’t have any significant role in this market, specially because most of them trade through the market maker brokers that are completely isolated from the real currency market.
But, still I haven’t given a precise answer to this question that why the bigger the currency market becomes, the shorter time frames become less important (and so riskier to trade) and the longer time frames become more important.
The reason is that the main market participants who are the real market players who make the price move and form the trade setups, set more long-term goals for their transactions and investments. Therefore, they have to pay more attention to the longer time frames like monthly. As a result, the monthly time frame becomes more important, because the big players use it more.
Why Monthly Candlestick?
Among all the signals that you may follow based on the trading system you use, the monthly candlesticks are very important to check, because sometimes just a single monthly candlestick can show you the direction of a market for the next several months or even years.
Why December Monthly Candlestick?
Now another questions is why December monthly candlesticks are more important according to the title of this page?
I am not saying that all of the December monthly candlesticks are important every year. All the monthly candlestick are important but this year’s December monthly candlestick is even more important because the United States of America is going to start and has already started a new era with the new president who is apparently very different from all the other presidents that Americans have had so far.
He is a successful politician and a very successful businessman at the same time, and this makes a big difference.
That is why you see that USD has already started getting stronger because international investors know that now they can rely on US economy more and most probably they will make more profit through their investments in USA.
Click Here to follow my previous posts on this topic.
It is the right time to take a closer look at the monthly time frame and specially the December monthly candlesticks now.
What the November and December 2016 candlesticks tell you on USD/CHF monthly chart?
Also EUR/USD monthly time frame:
Good luck 🙂