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What are the best time frames to use in Forex?
There are lots and lots of time frames you can use in Forex. All Forex starting flat forms offer charge from one minute up to weekly or even monthly time frames. So, what is the best time frame to analyze the currency fare and make money in Forex. All that depends on the kind of trader you are. If you’re a day trader you need to use short time frames in order to capture the small trends in Forex. If you’re a swing trader or investor, you need to use larger time frames in order to capture the biggest swings in Forex, the best time for a day trader.
There are plenty of time frames that can be use for day trading. The most common ones are the one minute, the three minute, the five minute and the 15 minute or even the 30 minute. The one minute time frame is not very good, since you’ll always pay a three or five pip spread in Forex, most of a time the one minute period doesn’t offer you a much opportunity. This time frame is too small in order to avoid all the noise and order to find good intra day trends. The same happens with the three minutes chart, if you use this chart you won’t be able to notice any difference between the small price swing and a big one. The five minute is a decent time frame for day trade Forex. It allows you to catch fast rates with decent movement in order to pay for the spread and keep some profit for you as well.
The fifteen minute time frame is like the five minutes, one of the best time frames for day trader. It allows you to clearly see the difference between small trends and the big ones. This time frame also allows you to hold your winners for much more time in the five minute time frame so it a good choice for day traders. The 30 minute time frame can also be use for day trading Forex. However, this time frame can be use if you intend to hold the trade for up to 6 or 8 hours. The best time for swing traders, the most commonly use time frames for swing traders are the one hour chart to two hour chart that four hour chart and even the daily chart. The one hour chart is a good time frame if you want to hold the trade for one to two days. It presents good opportunities for this kind of trader and allows you to trade with good risks rewards. Something that’s almost impossible to do in small time frames like the five minute chart.
The two hour chart and the four hour chart are probably the best time frames for traders that want to hold the trade for some days up to two weeks. These time frames allow you to capture the biggest movement in Forex. The daily chart is intended for traders that want to hold the trade for a week and for investors. It’s a good time frame that allows you to know where currency pairs headed for the next weeks. There are a lots of time frame to choose from a Forex depending on the kind of trader you are you can used this different time frames to achieve your goals. Keep in mind that all time frames had advantages and disadvantages compare with the others. You simply need to choose the ones which work better for you. When you’re looking for your favorite time frame, keep in mind that if you’re going to use technical analysis in your trading, this kind of analysis works better on larger time frames. Any technical indicator works better with larger time frames. Visit us at Forex Top 10 for more Forex articles and also reviews on system, software, courses, eBooks, brokers and everything Forex.
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