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The Best time to Check the Currency and Stock Markets


Lack of patience is the biggest problem of the novice traders which is indeed a problem that comes from greed. They want to make money within the shortest possible time, so that they don’t wait for the trade setups to mature and form and they enter the markets too early.

I have seen this a lot that many novice traders enter the markets when they see that the daily or weekly candlestick has formed a strong body, and so a strong engulfing patterns while it is still forming and hasn’t closed yet. They enter the market but then the price changes the direction and a strong body changes to a long shadow which means the position that the trader has taken is absolutely wrong.

The best time to check the daily chart and daily candlestick is when they are closed which is usually at 5pm EST on most of the trading platforms. You can check it even one hour before because the price usually doesn’t change that much in the last one or two hours. However, everything is possible and the best thing is waiting for the candlesticks to close first.

The best time to check the weekly chart and candlestick is on Friday afternoon when the market is closed, and so the weekly candlestick is matured, or, on weekend and before the market opens. You have a lot of time to check the weekly candlesticks of all the securities you follow and decided whether you want to enter at the market open or not.

And the best time to check the monthly candlestick is on the last or first day of the month.

If you are a day trader which is something that you’d better to avoid, you have to wait for the candlesticks to close and then decide whether a trade setup is formed or not. You cannot analyze a candlestick while it is still forming.

Above all, you should always wait for the trade setups to mature no matter what trading system you follow.

For example, if you are waiting for a resistance breakout to buy, you have to wait for the price to close above the resistance line on that special time frame that you are following. If you are waiting for a resistance breakout on the daily chart, then you have to wait for one of the daily candlesticks to close above the resistance line first. As long as the candlesticks are closing below the resistance line, your trade setup hasn’t formed.

The resistance line can’t be considered broken when a candlestick has moved above it but is still forming and hasn’t closed. Chances are it goes down and closes below the resistance line even few minutes before the candlestick close.

To prevent yourself from entering the markets before the trade setups form, you can check the charts only after the candlestick close and for example you shouldn’t check the daily chart at 11am EST while the current daily candlestick is going up and down and is still forming. A big candlestick body at 11am doesn’t mean anything yet, because it is possible that it changes to a shadow below the resistance line.

For example two days ago (see this post), the 2017.01.03 daily candlestick went above the 1.0327 resistance level. It could be considered as a long trade setup if it would close above the 1.0327 resistance level, but it didn’t. It went down and its strong body changed to a long upper shadow, and it closed below the 1.0327 resistance level, which means those who have been wait for a long trade setup to go long with USD/CHF still had to wait.

You Still Have To Wait For A Long Trade Setup On USD/CHF Daily Chart.

Good luck 🙂

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LuckScout
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"Whether you think you can, or you think you cannot, you are right." - Henry Ford

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13 thoughts on “The Best time to Check the Currency and Stock Markets
  1. Mehdi Fallah Mehdi Fallah says:

    hi chris
    thanks a lot for your excellent advise.
    you are absolutely right. but checking the daily chart at the 5 Est is just for those who live in USA session. in my country ( Iran) that time is 01:30 in the morning and we are in sleep and in the morning l have lost the set up if it was. of course most of the other traders in middle east or Europe countries are in sleep especially in England which is one the biggest forex market and England traders have my problem . i dont know how they have find a good solution for this problem.of course there are some articles on the sites such as:
    -“When You Are Late to Take a Trade Setup”
    -“Currency Pairs Explained – Understanding the Currency Pairs in Forex Trading’
    but they could not be so helpful. some times i think the best time frame is 4h for me to have more set ups. may i have your idea or a way for not loosing more all setups
    . thanks

    • LuckScout LuckScout says:

      Hi Mehdi,

      4hrs chart is not the solution. You either have to wait for the daily candlestick close or you can check it about one and a half hour before the close which is 12:00am your time.

      The other solution is trading the weekly and monthly charts when you can’t follow the daily chart properly.

      • Mehdi Fallah Mehdi Fallah says:

        hi chris and thank you for your solution.
        weekly or monthly time frames are good solution. what is your idea about the stop loss that would be too much high?

        • LuckScout LuckScout says:

          Hi Mehdi,

          The pipage of the stop loss orders have to be larger on the longer time frames, but if you take smaller positions, that won’t be any problem.

          If you want to take a 2% risk with a EUR/USD position on a $10,000 account, then you should lose $200 if your stop loss gets hit. If the stop loss is 100 pips, then you should take a 0.2 lots position, but when it is 200 pips, you should take a 0.1 lots position. In both cases, you lose $200 which is 2% of your account.

          You should calculate your position size based on the risk you want to take no matter what time frame you are trading.

  2. N A N A says:

    Thank you Chris, good reminds!!

  3. John Statham John Statham says:

    Great post again many thanks. In response to Mehdi I live in the UK and the New York close for me is 10pm. I have tried trading at this hour but find my brain to be tired and easily confused (more so than usual). What I do is trade in the mornings which happens to be about half way through the current trading day, but I ignore (at first) where price currently sits. My focus is solely on the previous days closed candle and it’s preceding price action, was that candle a valid trade – yes or no.

    Assuming it was valid then price will currently be in one of three places and I use three strategies depending on which:

    1. Price has continued in the anticipated direction – set a limit order at the close of the previous days candle. I am hoping here that price will re-test a broken support/resistance level.
    2. Price currently sits around the previous close – enter direct to market.
    3. Price has retraced to within the previous candle – enter direct to market to take advantage of the better position.

    Stop loss as usual based on the closed candle. I would love to hear any comments.

  4. a hunter exposing at the wrong time may make him the prey.

    guys, this is the only site I encountered that tell’s you about the best candle close time at 5PM EST, to work your analysis for the right results.

    thank you dear Chris for great details exclusive just here.

  5. Brian Fong Brian Fong says:

    Thank you the good advice. 5pm is 6am over here so i guess i can wake early to check. I have been struggling to decipher the Daily chart from 8pm onwards my time (which is 8 am onwards NY) but of course the candle doesnt move much.

    so i look at the Hourly and 4hr taking into consideration the Daily bias. According to your article trading on the hourly and 4Hr is not advisable?

    Tks!

  6. Mehdi Fallah Mehdi Fallah says:

    Hi john
    Thank you very much for your comment. It can be very helpful. Some questions for better understanding :thanks for your reply
    1-What is your mean about previous days closed candle. How many days?what about the shape of these candles? Are they important?please have some details about it’s preceding price action.
    2-the first strategy is based on hope. It is possible to happen and it is not
    3-about second strategy, suppose we are at the end of up trend , the previous candle is a strong breash candle. The current candle is doji with the open price at the close price of previous candle. Is it a good idea enter to market? And about third strategy this doji could be within the pervious candle.
    In both situations there are not formed strong pattern and no confirmation even for that bearish previous candle.
    Hope I could to tell my mean. Sorry for not good English

  7. John Statham John Statham says:

    Hi Mehdi,
    1. By previous days closed candle I mean the very last one that is matured/complete on the daily chart, so if trading on a Tuesday I only look at Mondays candle for my analysis. As for shape and preceding price action I follow the stochastic system.
    2. You are quite right about the hope statement, price will not always retrace and trigger a limit order. I will miss some trades but that is the price I pay for deciding not to trade at the New York closing time.
    3. As the current candle is still forming it could end the day anywhere so I only use where price currently sits (not shape of the incomplete candle) to decide whether to enter at current market price or set a limit (pending order). In your example if the bearish (closed) candle forms a trade signal then I will enter the market, however in this case it may not conform to the stochastic system so I personally would probably not trade this. All the best.

  8. Mehdi Fallah Mehdi Fallah says:

    hi john
    thank you very much for great details description. i think you found good solution. i will try to use your experiences in my trading. Dividing the problem into three cases and determine which strategy will be work acurately is very wisely.would like to ask more in future.
    thanks again

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