Different Timeframe In Forex

[moonchild]

In Forex we take trades based on the signals we get from our charts, if we see the bullish in control we enter a buy position and when the bearish are in control we enter a sell position but another important variable that also contribute in taking trading decisions is the timeframe, it helps us to navigate through the markets through different time frames, for example those that are interested in scalping which is basically holding positions for a short time before exiting, the timeframes you should focus on are the lower time frames.

Also if you like to hold trades for a very long time then you have to go to higher time frames like four hours to eight hours timeframe.

As a beginner, it's advisable to focus on higher time frame because they don't have much noise and you spot a good structure and also take your trades without any fear of break of structure.

Also candlesticks are different and hold more data depending on the timeframe.

One candlestick on four hour holds four hour worth of data, while five minutes candle holds five minutes worth of data, so the higher the timeframe the more solid the market structure is.

 

[Dita Walczak]

We see different timeframes in a platform, and these are given to understand the market situation according to different time frames. Generally long term traders follow monthly, weekly, and daily charts. On the other hand, scalpers follow hourly charts to make their quick decision about trading.

 

[Setho]

Technical analysis is one of the most exciting things about the forex market and you can be able to learn a lot of things about the market by simply just following it . Time frames is usually used mostly when trying to interpret the candlestick pattern . For example if you are trading day for hourly time frame it means that it has actually taken 4 hours for one of the candles to form .

Time frames are actually very important in trading because it can be able to give you a technical perspective of how price have moved around the region so that you can be able to compare it with historical data .

This has become necessary because there is usually two types of trading behaviour between people who are trading the financial markets. There are people who love to see things on a shorter perspective and this kind of people usually trade the intraday time frame such as the four hourly time frame and the two hour time frame. This kind of people are also known as scalpers.

There are also a group of people who love to be swing traders and they usually monitor high time frames like the daily time frame or the weekly time frame or the monthly time zone.