Most forex traders have no idea how and why Forex prices move and they make key mistakes in the way they trade time frames. In this article, we will look at three popular timeframes and see what is the best timeframe to trade in your trading strategy.
In the forex markets, the supply and demand prices of all the basic principles will be shown in the pricing process as well as the views of all the traders, so break down the price action into 3 time frames.
Long term trends
Major trends in currencies that last from a few weeks to several months and reflect the economic and political health of the country’s currency. They change slowly from major expansion to contraction, which is why these trends last so long.
Intermediate Term Trends
Although big fundamentals dominate the long term, in the short term traders’ sentiments can push prices very high or low and this can be seen in the trends within the big trend which can be with or against the big trend. Typically, these trends last from a few days to a week.
Short term trend
This is an action taken within a day and there is really no tendency for random price action. Prices can go anywhere in a day and they do.
What is the best time frame for trading?
It is clear from the above that trading long-term trends can give you the greatest amount of profit with the least amount of work. What you do is join the trend and stop it – but after a long-term trend, it is only really appropriate for a trader who is patient.
Trading intermediate term trends can be very lucrative and trading long term trends requires less patience and discipline. You can make money in both time frames and the one you choose will be under your personality.
I haven’t mentioned day trading yet and it has the most popular time frame for trading but it doesn’t give you any real chance of success. There is a big industry that sells junk robots and others, called risky day trading and scalping strategies but they don’t make money and day traders get lost.
If you want to win in forex trading, do not make the mistake of majority and do short term trading – do long term trading and you will face difficulties on your own and you will be able to make another big profit. ۔
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