What’s The Best Time Frame To Trade Forex?
by John on 02/12/08 at 6:57 pm
A common question for beginners is which time frame should they use. Should they trade in 5 or 10 minutes charts, or in 1 hour charts?
The rule is that the longer the time frame, the most reliable is the technical analysis. For example, if you’re trading on 1 hour charts using the same strategy as another trader that uses 1 minute charts, your signals will be much more accurate. You’ll get less signals but better quality signals.
If you’re looking to swing trade Forex, you should use daily charts or 4 hours charts.
If you’re looking for day trading you can use 5, 15, or 60 minutes charts.
You can also combine different time frames so that you can know the short term trend and the long term trend. In that case, you can use for example a 1 hour chart to know the trend, and a 15 minutes chart to fine tune your entry and exit points.
