The Best Time Frames To Trade For A Forex Trader

Best Time Frames To Trade For A Forex Trader

As a Forex trader we want any trading edge we can get right?

 

 

 

Picking the best time frames to trade for a Forex trader can be the difference between

 

 

Forex success

 

 

missing out on Forex success

 

 

 

The Best Time Frames To Trade For A Forex

 

Trader

 

 

All of the strategies I teach In blog posts, videos & our tailor-made Forex products work on any Forex time frame.

 

I can't guarantee you have purchased one of our products. So I am going to break down 3 time frames you can start using today based on the type of strategy you are using.

 

If you want to listen to one of our podcast episodes covering a similar topic, listen to this.

 

 

Best Forex Time Frame To Trade For A Long Term Forex Trader

 

 

Long term trading is generally easier than short term trading. But normally requires much more money to start off with, if you want to trade with accurate risk.

 

I'm more suited to a longer term approach but since I didn't have the money starting out, I had to learn how to trade short term charts.

 

This is how the strategies I use work on any time frame (from short to long).

 

Best Forex Time Frame To Trade For A Long Term Forex Trader

 

 

Why I Like Long Term Charts

 

I like the daily chart above all longer term charts. Some of the main reasons I listed below.

 

 


  • Gives you a clear picture of which way price is going (you can't miss it)
     
  • You have loads of data to compare against
     
  • When right, you win big
     
  • Profits can be made in weeks or a few months usually
     
  • You can use all this information on shorter time frames

 

 

Daily Chart USDJPY

 

 

Let's take the chart above For example.

 

Which way was the market moving if we take the whole chart into consideration?

 

It was moving up and then went into some sideways action. For me, I would rather take a trade going up than going down because it would be in the same direction as the overall move currently.

 

For some reason the market dropped but chose to go no lower at the level where I've drawn a black line. The reason I highlighted it is because I want to make it clear, the black line would have been drawn on after price bounced off this region not before.

 

 

Trading This Daily Chart Example

 

 

The yellow box was January. Price never came back to that black line until May. As time goes by I know more and more this level is a very strong level because price hasn't come back yet. You can see if you are trading off this black line, risk would be reasonably small. But the reward would be reasonably big.

 

It took me about 30 minutes max to find this level, draw up a plan and execute. In a week or two 150 pips profit is made from 30 minutes of analysis. This doesn't take into consideration my day trading which I will get to in later parts of this post.

 

 

My Long Term Conclusion

 

 

As you can see, trading the daily charts is really easy to scout out potential levels, trade them and profit from them. Long term trading is this easy and enjoyable, you can make it automatic.

 

Like I mentioned above however, it usually takes more money to trade long term, because your stop loss has to be bigger than trading short term.

 

If you don't have the necessary funds to trade long term properly, keep this first part bookmarked for when you do and move on to the next time frame I think is great for Forex traders.

 

 

Best Forex Time Frame To Trade For A Day Trader

 

 

I would think most traders are day traders, especially those who trade to live off their Forex profits.

 

What you need to think about is, there are so many time frames to pick from.

 

For a day trader they can really choose from

 


  • 4 Hour
     
  • 1 Hour

  • 30 Minute

  • 15 Minute
     
  • 5 Minute
     

 

Best Day Trading Time Frame

 

These are pretty much the most common. But there are others people tend to use. As well as time frames people create. I know you can create time frames in MT4. So ultimately, you could be looking at more than 10 day trading time frames.

 

As a day trader looking to live off profits, you are more than likely going to need profits daily or at least a few times a week. Based on that, you need a chart which can reasonably provide the opportunities regularly. And you need the opportunities to be worthwhile.

 

It narrows things down now because a 4 hour or 5 minute probably provide too few or too many opportunities. 4 hour trades might provide bigger profits but how long will they take to realize? 5 minute charts are the opposite.

 

You are left with 3 options and I like to choose the 15 minute time frame.

 


Why?

 

 


  • I think it's the most popular out of the three for day traders
     
  • You are not waiting around for an hour each time to see what is happening
     
  • I think it provides the most reasonable opportunities which are also worthwhile out of the three left
     
  • I could easily have about 3 good to great opportunities daily
     

 

15 minute charts

 

 

15 minute charts generally give you a nice overview of a days worth of trading.

 

You can normally see key levels from the last few days and this helps for finding potential entry zones & potential profit zones.

 

Unlike with the daily charts, trading both ways regardless of current trend is more acceptable in my eyes. Because price easily moves both ways in these shorter time frames. And does provide good setups. I would always highlight however, it is usually safer to go in the same direction as the long term move but it's entirely up to you.

 

 

Best Forex Time Frame To Trade For A Short Term Trader Or Day Trading Execution

 

 

You will hear most people say never go lower than 5 minutes. And I agree with some of the logic but not  everything.

 

Firstly, if you are  short term Forex scalper, short time frames is your bread and butter. So I don't really have much to say. But how I use short term time frames (mainly the 2 minute chart) is for day trading execution.

 

Now to be clear, I don't always execute day trading trades on 2 minute charts. Sometimes I take the trade based on 15 minute only. This means, I can set an alert or order in advance or I could take it manually.

 

 

Executing With 2 Minute Charts

 

 

What we are starting to get into is trading with multiple time frames, like I shared in this video.

 

 

 

If you watched the video I linked to above, you can see how I cut my risk in half. But kept the same profit target.

 

The picture above was a screen grab from the video.

 

Whoever Said The 2 Minute Chart Was Useless Needs To Rethink Their Approach. It's easy to say use long term charts when you have the money. Not everyone has the money, so they have to find working strategies for shorter time frames.

 

 

Want More Help?

 

I've gone through loads of quality content here. And I know this may be overwhelming. I may not have specifically covered your current situation. Or you may just want some more advice on content to help you grow as a Forex trader.

 

Let's schedule some 1 on 1 time were we can break loads of this stuff down. And get you earning some Forex profits or making more Forex profits.

 

 

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