Our 4H And Daily Candle Close Strategy Explained | $500 Account Challenge Day 26

4-hour candles: a seemingly simple tool in the technical analysis toolbox. But hold on! Before you jump into analyzing those wicks and shadows, there's a hidden wrinkle – the closing times can vary depending on your broker. Confused? Don't worry, this quick guide will untangle the mystery of 4-hour candle closes on popular platforms like Webull and TradingView.

July 3, 2024
Meta Matt

Day 1 : Building a Watchlist and explaining the strategy Jo
Day 2 : $PLTR Trade Idea 
Day 3: Buying $HOOD
Day 4: Up 5% on $HOOD
Day 5: Entered $UA Trade

Day 6: Trading In Puerto Rico
Day 7: Introducing Beacon
Day 8: S&P 500 Record Highs
Day 9: Robinhood Makes Moves Into Crypto
Day 10: Roaring Kitty Meows

Day 11: $GME Trade Idea
Day 12: $NIO Trade Entry
Day 13: Taking Profits In $HOOD
Day 14: Stopping Out Of $UA
Day 15: Stopping Out Of Everything

Day 16: No FOMO
Day 17: 6 New Trade Ideas
Day 18: Entering $ACB Trade
Day 19: DXY Tells Us To Stay Out Of The Market
Day 20: "Shoulda, Coulda Woulda"

Day 21: $CCL Hits Target 1
Day 22: Trading Psychology Book Club Week 1|
Day 23: $NKE Earnings Play
Day 24: Adding Day Trades To Our Watchlist
Day 25: Learning From Our Mistakes
Bonus: Using TraderSync To Track My Trades For This Account

Interested In Having Jay As A Trading Coach So That He Can Teach You How He Finds These Trades? Click here to get started! Scroll To The Bottom Of This Blog For A HUGE Discount!!

Understanding 4-Hour Candle Close Times Across Brokers

The world of technical analysis thrives on consistency. We rely on charts and indicators to paint a clear picture of price movements, using tools like candlesticks to track highs, lows, opens, and closes over specific timeframes. But there's a gremlin lurking in the seemingly straightforward world of 4-hour candles: their closing times can be surprisingly... tricky.

The culprit? Different brokers have different ways of displaying these candles. Let's delve into the variations you might encounter with popular platforms like Webull and TradingView.

Webull: Standard Hours vs. Extended Hours

Webull offers two ways to view 4-hour candles, depending on whether you've activated extended hours trading:

  • Standard Hours: Here, things are (somewhat) predictable. The first 4-hour candle closes at 1:30 PM Eastern Standard Time (EST), with subsequent candle closing at 4:00 PM EST. This aligns with the traditional market hours for many assets.
  • Extended Hours: With extended hours enabled, Webull throws a twist into the mix. The first 4-hour candle closure jumps to 8:00 AM EST, with subsequent closes happening at market open (9:30 AM EST), followed four hours later by a 1:30 PM EST close, then we have 4PM EST market close as the next 4-hour candle close, and then finally at 8PM EST. This provides a more consistent user experience during extended hours trading, even though the data during these times might be less reliable due to lower trading volume.

Webull, without extended hours: 1:30PM, 4:00PM EST
Webull with extended hours: 8:00AM, 9:30AM, 1:30PM, 4:00PM, 8:00PM

TradingView: Standard or True, You Choose

TradingView offers more flexibility when it comes to 4-hour candles. You can choose between two display options:

  • Standard Hours: Similar to Webull's standard hours, the first candle closes at 1:30 PM EST, followed by subsequent closes every 4 hours.
  • True 4-Hour Candles: This option throws out the traditional market schedule entirely. Here, candles close every 4 hours throughout the day, regardless of whether the market is open or not (typically, 4:00 AM EST, 8:00 AM EST, 12:00 PM EST, etc.). This can be helpful for analyzing assets that trade 24/7, like cryptocurrencies.

Understanding how your broker displays 4-hour candle closing times is crucial for accurate technical analysis. Before diving into your charts, take a moment to confirm the settings. Are you using standard market hours, extended hours, or true 4-hour candles? Knowing this distinction will ensure you're interpreting the information correctly and making informed trading decisions. Remember, a little awareness can go a long way in preventing confusion and keeping your trading on the right track.

Which 4H Candle Close Times Do We Follow For Our Plan?

If you've been following our $500 Account Follow Along, you know we use the 4-hour candle a lot in our strategy. So it's good to know which 4-hour candle closes we are watching, when it comes to the hours of the day.

Our strategy is simple. We are only looking at the 1:30PM EST 4-hour candle. So when we say "Break below $5, followed by a 4H candle close back above", that means we are waiting for the price to break below $5, and then close a 1:30PM EST 4-hour candle back above $5 for us to enter.

What About The Daily Candle?

For the Daily Candle closes we are watching 4:00PM EST as our daily candle close. So if we are waiting for the price to break below $5 followed by a Daily Candle close back above. That means we are waiting for the price to break below $5, followed by a 4PM EST close back above $5.

$500 Account Follow Along Update

Our account is still up even after our slip up yesterday. For our open plays our 1 share of $CCL (we sold the other 6 shares at Target 1) is still up 8%. $SYM which we bought late last week, is up 3.40% as well. $TKO is the play closest to our entry, I personally am very bullish on that company.

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