Use 1 hr charts for trading for 1 hr trading

Forex Trading Nigeria

Home | General | ( 1 ) | Subscribe

Posted by on Monday March 12, 2012 11:8:21:

One thing I have noticed about price charts on trading windows is that the signal they give are only valid for the time frame they display. If for instance you are using a 15 min time frame and the currency pair is bullish, then if you are going to go long because of that signal, you should only do so for a maximum of 15 mins. After the time frame expires, anything could happen next and you are not prepared for that.

If you are a scalper, one that trades for only short time intervals, then you should set your time frame on such short term intervals during which you leave an open trade. If trading for 15 mins, use 15 mins time frame charts, if trading for 30 mins, do likewise.

For longer term forex traders who tend to trade when the market is making a trend, going in a direction for a much longer time interval, then use longer time framed charts. If you intend leaving a position open for 1hr, then use 1 hr chart, if trading for 4 hrs, then use 4hr charts and after that, you would need to re-strategize since your assumptions are already expired once the time frame upon which you made your decisions have elapsed.