Good morning friends. Its 7.30 pm here in Singapore and I feel like sharing some pointers on the importance of the 5.00 pm New York Closing time which happens to be 5.00 am Singapore time and the time when I am most likely being asleep at. Hehe..
Nevertheless, it’s important to take note of a few things here.
When the closing time approaches, traders all over the world will ask themselves this question: “Should this open trade be left open or should I close it?” This is why near to the closing time you see a lot of volatility because traders at that time are making their decisions based on that question.
The situation is further exacerbated by the fact that American and European traders are trading at the same time. It is about 10.00 to 11.00 pm when NY is at 5.00 pm. European traders may still be on their screen.
Hence, the closing price at 5.00 pm is super duper important. It tells us the ‘True’ sentiments of the Americans and the Europeans.
Also, traders who base their trading decision on the daily time frame will be looking at the daily bar and they use the 5.00 pm US close as the ‘End of Day’ time. Taking a different closing time for the close of a candlestick would show you a different candle. Hence why, professional traders take the NY close as the point where the day ends for any trading day.
So, if you are trading using the daily time frame, it is also important to take note when the end of day is for your charts. An MT4 chart ‘end of day’ differs from one broker to another. So do take note of this, if not you might be analyzing charts differently from the professionals who move the market.
I hope this small nugget of info has benefited you.
All the best for next weeks trading. Trade like a sniper aite.