What cashbackforexpipcalculator the best cashback forex calculator Online frame for Forex trading? This is an age old question and just giving you an answer is enough to end the debate you see, every trader is different as human beings we all have different personalities and therefore different needs one thing is for sure, you have to find the right trading style for your personality on the issue of time cashback forex, some of us need the excitement of trading from inside and outside the market in multiple time zones on the same day, while others if This leads us to the unbreakable truth - the "best" time frame for forex trading is the one that works best for you. cashbackforexprofitcalculatorn other words, the answer is not right or wrong, only what you think is right or wrong. Surprised? I know that most "authorities" on this subject will try to convince you that what they think is the "best" is the universal truth, well, Im not one of them because I really think its up to you to experience it and find out what works best for you. While I cant tell you what the best time frame is for you to trade, I can tell you what the best time frame is for me, and I can sh cashbackforexcalculatorOnline with you what the best time frame is for the price action strategies I teach. Before we get into the details, lets first explore the most basic topic - what time frames work for Forex traders There are 9 standard time frames that work for you I call them "standard" because there are some variations that we need to understand Formal standard time frames: 1 minute 5 minutes 15 minutes 30 minutes 1 hour 4 hours 1 day 1 week 1 month So even with standard time frames there are plenty of options and if thats not enough, there are platforms that offer more options including 6 hours, 8 hours and 12 hours, to name a few, but these 3 are the most common If thats not enough, you can even modify the custom time frames on MT4 to suit you However, I dont recommend doing this and I dont recommend using the above variant time frame variables forget what I told you about modifying time frames on MetaTrader you dont have to do this to successfully trade against price action in fact, modifying time frames will only adversely affect your chances of making a profit as you may have guessed by now, Im not dead Stay true to any forex time frame except the 9 standard time frames, you are right I dont think variations in form are needed, in fact I think they are counter productive The reason price action (or any type of technical trading) works is that a large number of traders see the same thing at the same time, thats it! For example, if a large number of traders see the same key levels as well as the same long price action, what might happen is that the market moves higher as those traders start buying drawdowns in the most followed time frames and you start to make a difference For example, lets assume that in one market, 1000 traders are following a long pin candle pattern on the 4 hour chart but in another market, there are only 100 traders The total number of participants following the 8 hour chart is the same in both markets which do you think is more likely to succeed? If you think its the market with 1000 traders, then congratulations! What time frames I use and why From experience I can tell you that the two best time frames to trade are the daily and 4 hour charts This is not to say that you cant profit from other time frames, but rather that I profit on these two time frames and they are the most effective of the price action strategies I use There are 4 advantages to using these higher time frames: Being a natural news filter is easier to Developing a directional bias provides quality, not quantity reduces trading frequency Although there are more reasons, these 4 are the main factors that make the higher time frames achieve distinction Lets look at each factor in more detail As a natural news filter it goes without saying that the range of each period in the daily chart (highs and lows) is greater than each period in the 5-minute chart It is a natural news filter and may not be It is very obvious how it does it? The easiest way to explain this is to look at two different moving averages a shorter period and a longer period 5 minute chart 10 period moving average 5 minute chart 100 period moving average The purpose of this example is to let us assume that the 10 period moving average represents the 5 minute chart and the 100 period moving average represents the daily chart Notice that the 100 period average is more flatter? Now, assuming a stop loss at the same end of each moving average at the same distance on both charts, which frame do you think is more likely to hit a stop loss, the 5-minute or the daily chart? I think we can all agree that the 10-period moving average (5-minute chart) is more likely to hit a stop loss because it is more volatile. This results in your stop loss on the 5-minute chart being more likely to be hit during Forex news than on the daily chart. This is why traders who trade against lower time frames use higher time frames to identify support and resistance levels. Not only is it easier to identify support and resistance levels on higher time frames, but levels on higher time frames carry more weight than those on lower time frames because it takes more time to create these levels. Smaller time frames are more reliable in providing quality, not quantity. Higher time frames usually provide higher quality setups compared to lower time frames because there are fewer setups on higher time frames. For example, a pin candle on a given currency pair may only occur once or twice a month, while on a 5-minute chart, it may occur 5-10 times in 24 hours. This is because, for more traders around the world, the patterns are more obvious. We know that the most obvious price action setups are the most favorable ones to trade. In order to see effective trade setups, your mind must be in a neutral state If you trade all the time and are always in anxiety, you will not be able to let go of your mind to identify when favorable setups arise This open and neutral mindset is only likely to occur when there are fewer trades The old saying "less is more" is most accurate in You dont need to make 20-30 trades per month to be profitable in Forex You only need to make 2 or 3 good trades per month to be highly profitable, even on the daily chart which can be very realistic if you use the proper risk-reward ratio We have elaborated on each of the advantages of trading on a higher time frame and I am sure you have some objections (I know. I thought the same thing when I first traded on daily charts in 2009) I can look back on my own experience of going from 15 and 30 minute line charts to daily charts, which at first seemed rather crazy I understand that there is not much profit in trading on slower moving time frames I was also nervous and doubtful about the massive stops that had to be made If this sounds familiar, you are lucky I have List the two most common objections to trading on higher timeframesThe following are the two most common objections I hear from traders who are concerned about trading on daily timeframesI dont have enough money to trade on higher timeframesIf you have enough money to open a trading account, you have enough money to trade on higher timeframesYou dont need a $10,000 account to trade on higher timeframes You dont need a $10,000 account to trade daily charts You dont even need a $1,000 account because of the leverage in the Forex market, even a $100 account can trade daily charts To calculate the correct position size in relation to your account size it goes without saying that you cant make $1,000 in a trade by trading in a smaller account But you can trade on a higher timeframe, starting from If you follow sound advice and stay disciplined, it is possible to build a small account into a large one. But its true, no matter how big or small your time frame is trading in higher time frames is boring only making money bores you but really, it involves a question you have to answer honestly before you can make a profit Why do you trade Forex? Just for the thrill of it? Is it to make money? Most of the forex traders I know are doing both because they dream of one day being a professional trader if not full time, then part time to increase their income, supplement their household, earn money for vacations and live a more comfortable life If you are trading forex purely for the challenge, then fine but please do it on a demo account rather than trading forex for the wrong reasons than not trading at all so what is the "right" reason? The "right" reason? It all starts with how you want to live your life your reasons must show a specific goal of how much you want to ask from the forex market
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