Sunday, November 24, 2013

Choosing the best time frame for trading



I want a little talk about the Time Frame. Many of us do not know how we're safe Time Frame for trading. How Time Frame which is not safe? As we know, the Candle at higher TF is a combination of movement of the TF that few candles lower.

Candle Height in H1 is different from the one candle high in H1 or M15.Candle could have the size to 100 pips even never reach 200 pips. Medium in M15 only reac
h a maximum of about 60 -70 pips. Errors take on TF H1 OP erosive floating candle would result in some swelling that occurs minus value. Example 4 floating candle H1 size minus 40 pips to 160 pips cause. While in TF M15 if floating candle size occur 4 to 15 pips, then the value of minus only be 60 pips.

This will affect the margin and equity security that we have. So use TF according to the power of capital and margin resilience that we have. If the stock just under $ 500, it's not safe to play on H1 or H4 especially in D1. One Candle D1 if one could take the position of minus 400 pips over a single candle, if resistance only 230 pips, we can MC in one candle.

In the chart the forex market platform, available time frame (Time Frame) that you can use to benchmark trading. All Forex charting platform offers a chart from 1 minute to weekly or even monthly period. So, the question often arises from the trader, which is the best time frame to analyze the currency pair and make profits in Forex?

If the answer to that question is me, then I will answer, "It depends on what kind of trader you are. If you are a day trader, then you must use the short time frame to capture a small trend in the Forex. If you are a swing trader, you have to use a larger time frame, in order to capture the best swing in the Forex.

The time frame for a day trader:


There is a choice of time frame (time frame) that can be used for the day trader. The most common are 1 minute, 5 minutes, 15 minutes or even 30 minutes. But for me, the frame time of 1 minute is not very good, because most of the frame period of 1 minute does not offer many opportunities. This time frame is too small to understand price movements and the difficulty of finding a good intraday trend. You will not be able to see the difference between the price was little and large.

5 minute time frame allows a reasonable time frame for the day trader. It also allows you to capture trade quickly with decent movement to take advantage.

Time frame 15 minutes is like 5 minutes, one of the best time frame for the day trader. It allows you to see clearly the difference between the trends are small and large. The time frame also allows you to hold the winner. Time frame 30 minutes can also be used for the day trader. However, time can only be used if you intend to continue in the trade of up to 6 or 8 hours.

The time frame for Swing Trader:


Time frames are most often used for the swing trader is a graph of 1 hour, 4 hour charts, and even the daily chart. Medium Time Frame 1 hour is a good time if you want to continue to trade for 1-2 days. It presents a good opportunity for this type of trading and allows you to trade preformance with good risk-reward (something that is almost impossible to do in such a small time frame chart 5 minutes or 1 minute).

Sedangka Time Frame 2 hour and 4 hour charts allow Time Frame for traders who want to hold a trade for a few days to 2 weeks. Time Frame allows you to capture the largest movement in the Forex.

Daily chart is intended for traders who want to continue in the trade for weeks and is suitable for an investor. This is a good time frame that allows you to know where the currency pair will move to the next week.

So, there are many options to choose frames from the use of Forex charts. Depending on the nature and type of a trader in the trading (day trader or swing trader), you can use different time frames to achieve your goals. We should remember that the time frame has advantages and disadvantages compared to the others.

If you're looking for a Time Frame your favorite, keep in mind that you have to use technical analysis in your trading.

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