Question on candle patterns and brokers

A

athan00

Hi all,
I ve got this question that troubles me that has to do with candles and brokers.

Whenever i m looking at a candle price (open/close/high/low) on a chart on broker A, on another broker B the very same candle price differs.

Generally almost all candles have more or less different open/close/high/low prices. I know this is normal since there is no central forex exchange platform and each broker has its own exchange.

But as a result of this, i cant be sure when a candle opens, if this new candle (any timeframe) is an inside or an outside candle since on broker A i have the scenario:
Candle 1 close: 1.43561
Candle 2 open: 1.43561

and broker B scenario:
Candle 1 close: 1.43561
Candle 2 open: 1.43564

and broker C scenario:
Candle 1 close: 1.43560
Candle 2 open: 1.43559

and so on. Each broker makes its own prices. You cant even rely on candle patterns while they are forming! Only after they have been formed.

So how do i handle this? Do i use candle patterns?(inside,outside,tweezers,dojis etc) or is it better to just ignore them?

TFs I m looking at are from 5m up to 4H.

Thanks

Athan
 
Funny you should bring this up, because Friday I was actually looking at this issue for the first time. I had up a 5 min chart of ES in both IB charts and Quotetracker, using IB feed. Same feed, but the candles looked different. As I watched the number on each chart tick up and down I found that the movement on QT actually lagged the IB chart, at least most of the time.

My only suggestion would be to just do all your research using the same broker/charting system you plan to trade off of. For me the sub- 1second chart movements don't matter all that much, so I don't consider the slight lag/difference a big issue.
 
Trade futures and that problem will vanish. And if you'd rather trade the fx, use futures charts for your analysis and then place trade on the fx side.
 
Thanks for the replies,

tomahawk
to my short research that i ve done the last few weeks (asking some "forex experts" and also personal research), what I ve found is:

a. there will always be a difference on price from broker to broker so i should not care about it.

b. some others they say that i should not care so much if a candle closes and next one opens a bit inside or outside.

c. others they say that just a 0.00001 difference is enough to baptism a new candle as an inside or outside candle. So i m really confused on this one!

d. the only forex signal feeder that i ve found to be more reliable so far (may be if i ll search more i ll found another one) is esignal that takes feed from 140 defferent brokers (and banks i think) and gives you an average. So i suppose thats the most reliable.
I havent tried that but it my next step to do a trial.
If you know any other please let me know!


brownsfan019
how can i "use futures charts for your analysis and then place trade on the fx side"?
any links you could give or a quick explanation and then i ll search for it.
I ve never traded futures before because they say that they can be really a "disaster".
And i m already 2 years in fx market and still trying to find my way... :)
Changing to futures i suppose it will take me another 3 years to learn to trade successfully.



Thanks
Athan
 
With different brokers/chart software showing different candles, that means that some traders will be looking at an outside bar which others will see as a non-outside bar. In such cases will the outside bar that those traders see be all that significant as a price predictor if there was disagreement among the brokers on the micro-second timing of where that bar closed?
 
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