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December Monthly Candlesticks Are Usually More Important

It is not the first time that I am praising the monthly time frame on this site:

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There are so many other posts focused on the monthly time frame. Just search for monthly time frame or monthly chart on this site and you will see them.

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.

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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.

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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?

USD/CHF Monthly Time Frame

Also EUR/USD monthly time frame:

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EUR/USD Monthly Time Frame

Good luck 🙂

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12 thoughts on “December Monthly Candlesticks Are Usually More Important
  1. Hello Chris, Happy new year

    It means usd/chf up trend and eur/usd down trend

  2. Wait for daily candle breakout the support on EUR/USD and resistance on USD/CHF and we can go buy and sell for both of them,the long shadow on November candle show some bullish pressure on USD/CHF and Bearish pressure on EUR/USD. November candle show continuation pattern.

  3. Ben Aqiba Ben Aqiba says:

    Hi Chris,

    thanks for another great article.
    About your question, regarding EURUSD monthly time frames.It seems the market is formed Descending triangle pattern on monthly time frame which is in most cases trend continuation pattern in Bearish market.
    November candlestick was very strong, and it is even break lower band.It is strongly react on middle band, and the candlestick has an upper shadow.
    December candlestick has reacted on Triangle support line,but she is failed to break below. But, because of November candlestick, it seems to me the Bears are strong, and they will eventually
    break support line.

    USDCHF November monthly candlestick was really strong . It has reacted strongly on middle band, and she is failed to break below. Bulls looks to me really strong, just because of November candlestick, and her Bullish body, and also lower shadow.
    December candlestick is showed the reaction on upper band, and also resistance line.She is closed as doji, which means the market is undecided.

    It seems to the Bollinger Band lines gently showing up.

    Please Chris,share your view. I would like to now am I on the right track .

    Thank you and Happy New Year 🙂

  4. another great and special {monthly time frame} topic, thank you.

    now for the November candle, it shows the control & charge foreword of the USD currency.
    for the December candle, it shows the USD charge has stopped by the end of 2016 at a support/resistance level, that most probably price will pass throw, for the reasons you explained to us in this topic with the new US president; whether we like hem or not hahahahahaha.

  5. N A N A says:

    Hi Chris,
    it seems that start the rise for USDCHF and begins the descent for EURUSD, but we must wait to see for the resistance/support breakout first.

    Thank you

  6. Goran . Goran . says:

    Chris, Happy New Year and wish you health and peace for you and your family and your team.

    Thank you for this article.Pure beauty of your strategy and your teaching how to approuch to Markets is something what keeps me going all this years.(two actualy 🙂 ) Flexibility and common sense, mixed with intuition can give us a very good market perception.

    Regarding to your question related to EURUSD and USDCHF my answer is the same.Big players will use opportunity to take advantage in this market conditions and drive market prices to take out all SL orders from big investment funds and midium size participants.Spikes can become common practice and unpredictable vollatility in following weeks.

    Knowing all that, clear direction from my view on EU and UC we can expect when Dow 20k level get broken.We all watch same levels on any currency pairs, so they watch them too.Our job now is to be patiante and wait for too strong trade setup to enter on any market because EU and UC december monthly candlesticks show me balance, betwean buyers and sellers.Confirmation needed.

  7. Goran . Goran . says:

    Thank You my mentor.

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