What's the best timeframe in Forex Market?
Some traders say that is the Daily, some others say that the best is 10 minute, others monthly...and so on. But, over the subjective vision of the market, in an objective way, what is the best timeframe for trading in forex?
We have to consider that the Fx market is a low-volatilty market and its volatility is controlled by our level of leverage implied in our trading strategy. So, if we want to do trading properly on forex, we have to consider a multiple timeframe strategy based on the volatility of the single market. For example, major pairs are less volatile than the exotics or cross currencies. And So?
THE BEST TIME FRAME?
Obviously the best timeframe depends on our trading activity, but, there is a simple and logic rule that lead the markets. Bigger the timeframe, more clear is the information. For example, if we look a 4H chart, is obvious that we have to consider this 4H in a combination of 6 candles in a daily chart. Considering the lower timeframes as part of the higher timeframes, is on of the key to have a more clear view of the market.
DIFFERENT TIMEFRAMES, SAME MARKET VIEW...
When we look at different timeframes and we seek a level that it is valid for trading in different timeframes, from the higher timeframes (weekly, daily charts) to lower intraday timeframes (30m,15m), we have to act properly on that level setting a strategy that has a risk/reward bigger than 1. This is on of the key for a valid trading strategy.
IN CONCLUSION
The best timeframe in Forex? Almost all timeframes!
Why? The best thing to do is to make a cooperation between different timeframes, from the higher to the lower. Obviously, is not an easy job to do, but when you have confidence about it, is almost certain that you will have results in the long term.
Some traders say that is the Daily, some others say that the best is 10 minute, others monthly...and so on. But, over the subjective vision of the market, in an objective way, what is the best timeframe for trading in forex?
We have to consider that the Fx market is a low-volatilty market and its volatility is controlled by our level of leverage implied in our trading strategy. So, if we want to do trading properly on forex, we have to consider a multiple timeframe strategy based on the volatility of the single market. For example, major pairs are less volatile than the exotics or cross currencies. And So?
THE BEST TIME FRAME?
Obviously the best timeframe depends on our trading activity, but, there is a simple and logic rule that lead the markets. Bigger the timeframe, more clear is the information. For example, if we look a 4H chart, is obvious that we have to consider this 4H in a combination of 6 candles in a daily chart. Considering the lower timeframes as part of the higher timeframes, is on of the key to have a more clear view of the market.
DIFFERENT TIMEFRAMES, SAME MARKET VIEW...
When we look at different timeframes and we seek a level that it is valid for trading in different timeframes, from the higher timeframes (weekly, daily charts) to lower intraday timeframes (30m,15m), we have to act properly on that level setting a strategy that has a risk/reward bigger than 1. This is on of the key for a valid trading strategy.
IN CONCLUSION
The best timeframe in Forex? Almost all timeframes!
Why? The best thing to do is to make a cooperation between different timeframes, from the higher to the lower. Obviously, is not an easy job to do, but when you have confidence about it, is almost certain that you will have results in the long term.