Quote:
Originally Posted by wolfe
Sounds interesting, but I've been wondering...
What's a bar in a given time frame but only a creation of man. Does the market really care where it "closes" it's bar? For the most part I think probably not. The market will do whatever it wants, whenever it wants, and could not care about bar time frames.
There must be a better way to analyze the market!
I haven't figured it out yet.  |
Hi Wolfe,
I was puzzled too by that question for a long time, and I think you are right for small timeframes.
But on H4, D1, W1, as many traders are using the closes of the bars, and also most of the indicators, it becomes like a convention, a rule of the game to make analysis, which may work better than nothing just because this rule is followed. Also, the close on D1 or W1, let to traders the time to take decisions during the night or during the W.E. Maybe it comes from the stock market trading : once the session is closed, analystes can do their analysis and take decisions for the next session, the close is the last know price.