Looking at charts while the stock markets are closed can give the impression that trading the markets is simple because the data is more static and therefore easier to analyze. When the markets are closed, there is no new information coming in and prices are not fluctuating, so it can be easier to identify trends and patterns in the historical data on the screen. Additionally, it is possible to remove the emotional aspect of trading when the markets are closed, which can make it easier to focus on the technical analysis.
During market hours, prices are constantly fluctuating and there can be a lot of information to process, making it more difficult to get a clear picture of the market’s overall direction.
It’s also worth noting that when the markets are closed, there is less pressure to make quick decisions and the focus can be on longer-term trends rather than short-term fluctuations. This can give the impression that the markets are more predictable and that it is easier to make profitable trades.
However, it’s important to remember that historical data is not always indicative of future results and that real-time trading can be much more complex and dynamic. Even though it may be easier to analyze charts after the markets have closed, trading in real-time involves taking into account many different factors such as news, announcements, market sentiment, and more. Additionally, trading with real money is subject to emotions and psychological biases, making it even more complex.