Most Forex traders have no idea how or why Forex prices move and make key mistakes in how they work. In this article, we’ll look at three popular time frames and see what the best timing for trading is in your trading strategy.
In the Forex markets, all the main news of supply and demand will be reflected in the price action, as well as the opinions of all traders, so it allows you to break the price action into 3 time frames.
Large trends in currencies that last from a few weeks to many months and they reflect the economic and political health of a country’s currency. These basic fundamentals are slowly changing from expansion to contraction, and that is why these trends continue for so long.
Although the underlying fundamentals prevail in the long run, in the short run traders ’emotions can raise prices much higher or lower, and this can be seen in intermediate trends, within a large trend that can be both with the underlying trend and the opposite. Typically, these trends will last from a few days to about a week.
This action during the day and really is not a trend, but just a random price action. For a day prices can go anywhere and they do.
What are the best time frames for trading?
From the above it is clear that trading long-term trends can bring you the most profit with the least amount of work. All you need to do is enter the trend and keep it going – but a long-term trend that fits is really only suitable for patient and disciplined traders.
Trading intermediate trends can be very profitable and requires less patience and discipline than trading long-term trends. You can make money both in the time frame and in the one you choose, just depends on your personality.
I haven’t mentioned day trading and its most popular terms for trading, but it doesn’t give you a real chance of success. There is a large industry that sells unwanted robots and other so-called day trading and scalping strategies, but they don’t make money and day traders lose.
If you want to win in Forex trading, don’t make the mistakes of the majority and trade for the short term – trade for the longer term and you will have chances on your side and be able to get a great second profit.