Beginner traders always want to know what is the best time frame for candlestick. Many platforms support different time frames from 1 minute to 1 month. Even some of them platforms support tropical time frames like 10 minute or 2 hours. I have published an article before about the Candlestick Strategy, you should read my article about it carefully. In this article I am going to explain more about time frame for which I like the most. My aim is to convince you to stop using time frames like 1 minute , 5 minutes , and even 15 minutes because it would be ended with nothing but just loss.
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I like the per day time frame for following important reasons
1. It takes 24 hours for each of the candlesticks to form. that’s why, each candlestick represents the movements and events of last 24 hours. This count as a big advantage for every Forex Trader because the events and movements of the past 24 hours could have a powerful impact on the movements of the next 24 hours candlestick at least. And this is a great chance to take good positions and make some dollars.
In the same way, A 5 minutes candlestick is the represents the past 5 minutes movements. And nobody can judge what will happen throughout next 5 minutes. The patterns, support and resistance of the lines and levels on the shorter time frames are less reliable. Therefore, your stop loss will be triggered very easily and your success rate will be lower.
If you go With the short time frames you have to face more noise and false movements.few years back, 1 hour time frame was reliable and strong enough to trade, but now a days it is not reliable anymore, just because Forex Trading market is changed very much and the volume of the transactions is increased much higher. So 1 hour is not reliable for any trader, what you can expect from the 5 minutes or 15 minutes charts?
2. When I trade with the daily chart, I do not have to sit at the computer for whole day
Some traders have to sit at the computer and stare at the price charts several hours without any break every day. They get frustrated and tired, specially when traders not able locate any trade setup, or when traders lose after several hours of monitoring the charts.
Sitting at the computer for several hours every day can cause many physical problems too. After some time you will experience problems of neck, shoulder and back born pain. It can also can affects your eye vision, and it is also possible that you could experience headache too. Then it will be even difficult to Forex Trading properly and some make dollar.
I work on Forex Trading for 20 minutes to half an hour just before the daily candle going to close. every Trader knows that on many platforms the daily candlestick closed at 5 pm EST. I usually spend about 15 to 30 minutes on Forex Trading just to check daily charts of different currency pairs and gold . As I only watch for the solid signals and I ignore the poor ones, my daily job finish very fast. If I find any trade setups, I take place, set the stop loss and target. That is all. My daily Forex trading work is done just within 15 to 30 minutes, and sometimes even earlier.
The pairs I follow are follow in this post:
EUR/USD, GBP/USD,GBP/CAD, USD/JPY, GBP/JPY, EUR/JPY, USD/CAD, AUD/USD, NZD/USD, AUD/CAD, EUR/GBP, GBP/AUD, GBP/CHF, EUR/AUD, USD/CHF, EUR/CAD, CHF/JPY, AUD/JPY, CAD/JPY and Gold.
I do not look on other pairs, because most of them have similar movement to one or a some of the above pairs, and most of them are not reliable. I think gold and 19 pairs are more than enough, and there is no need to check other pairs . It will not going to make dollars for you.
Usually Some people think that Forex trading is also same like other businesses, You have to work harder, If you want to make more money.
But this is not right about Forex Trading. harder Working and spending many hours daily at computer does not mean that you will sure make some more money and you will have a great success rate. It can also cause you to lose money. Even when you are experienced and wise enough to pick the strongest signals from any 20 pairs daily charts, why you will spend more time at the computer?
Maybe I will move to the weekly or even monthly time frames after sometimes . But I will not go for using the shorter time frames. I think we do Forex trading for making some money, we do not do Forex Trading to make our self busy. It should be used properly to make us some profit.
Don’t forget to read all my articles carefully. I try are write them in simple words, but my articles can really make some change in your lives, make your Forex trading much shorter as much as you can, and make it profitable for you