Candle patterns depend on when the bar starts

[Fairman]

Candle patterns depend on when the bar starts

A famous reversal pattern appears on a five minute chart on one platform. On another, set to a different server time zone, the same market produces a completely different set of candles.

The reason is that bars begin at fixed clock times. A five minute bar starting at 10:00 contains different ticks from one starting at 10:02 on a platform with an offset. Every pattern built from those bars is therefore a function of an arbitrary starting point.

On the daily chart, the problem is bigger. A broker that closes the day at 5pm New York produces different daily candles from one that closes at midnight server time. A pattern on the daily chart in one place may not exist on another.

This raises uncomfortable questions about patterns that rely on exact candle shapes. If shifting the clock by a minute or two makes the pattern disappear, how much of it was ever real?

One test is shifting the chart's offset by a few minutes and checking whether the strategy still works. A robust edge survives. A fragile one often vanishes.

This also touches on time zones for session-based patterns. A pattern defined by the first hour after the London open uses a clock-based definition, and shifting server time by an hour changes which ticks belong to that hour. Defining the window relative to UTC or an exchange clock keeps it stable.

Does the strategy hold up when the bar start times are shifted?

[FXS London Scalper]

Candle patterns depend on when the bar starts A famous reversal pattern appears on a five minute chart on one platform.

The same market producing different five-minute candles on two servers is a strong argument against relying on exact candle patterns. Patterns that survive a change in bar alignment, for example testing on bars shifted by one minute, are more likely to be real.