Wednesday, June 17, 2015

Forex Time Frames

The known rate of failed unsuccessful traders is around ninty percent. This is high because they do not learn how to trade. It could be higher but there is no way to prove that. If chart analysis was so successful, more new traders would be making money in the FX markets.  Do you really think a Forex broker or central bank are trading a one minute chart trying to day trade this market for ten pips.
So you can try time frame analysis breaks down like this. Generally, traders recommend using three time frames to plan your trades. The largest time frame determines the trend, which the  trader uses to decide whether they should go long or should we go short. Most like to also use the larger time frame to help with the supply and demand levels on your trading charts that the institutions are forming with their large orders.
The middle time frame is where you will mark my levels for entering trades zones. Using this medium time frame allows me to “shrink” your zones a bit a daily zone might be 100 pips wide, while a fine tuned four hour zone might be only 30 to 40 pips wide.  The zones indicate how large your stop loss must be. Larger zones have larger stops, smaller zones have smaller stops. When a trader chooses to use a third, smaller time frame, usually this is where he or she will “time” their entry. This is where we go into candlestick patterns for entry.
Trading Forex Time Frames