What is the best timeframe to profit from trading?

Which is best forex time frame?
Which is the best forex time frame?
When trading, we will open a trading platform (for example Metatrader or cTrader), where prices on the forex market displayed in chart form.

Forex charts illustrate the price movements of a currency pair in the forex market, whether the movement is up, down, or sideways.

However, our observation that price movements influenced by Time Frame. Before analyzing, we must first understand the Time Frame in forex.

Time Frame in forex is a certain period determined as a period of observation of price movements.

At different times, the price conditions displayed can be different. For example, the GBP / USD currency pair weakened in the last 30 minutes but has strengthened in the last 4 hours.

All this will appear on the forex chart if we change the Time Frame. The term, it forms forex charts from data on price movements collected in a period.

Therefore, if the Time Frame changes, the price movement data can change.

On the Candlestick chart in a 30-minute Time Frame, each candle represents a 30-minute movement (opening, highest, lowest, and closing prices), while in a 4-hour Time Frame, each candle represents a 4-hour movement.

The Time Frame unit shows the time needed to form a candlestick, so the graph will vary depending on the Time Frame. The most commonly used Time Frame units in forex are:

  •  1 Minute (M1)
  •  5 Minutes (M5)
  • 15 Minutes (M15)
  • 30 Minutes (M30)
  •  1 Hour (H1)
  •  4 Hours (H4)
  •  1 Day (D1)
  •  1 Week (W1)
  • 1 Month (MN)


On the trading platform, there are usually several Time Frame options available, and we can move around to determine which Time Frame is more suitable for forex trading activities.


Choosing Time Frames in Forex Choosing Time Frames in the forex is tricky. Using time frames in forex trading is very relative, depending on the methods and strategies of each trader.

A scalper who usually uses a time frame of 1 minute and 5 minutes, would feel strange when trying trading swing-style traders who accustomed to using a 4-hour and daily time frame.

For true scalpers, it is difficult to change the way of trading that has become a habit, and long-term traders who accustomed to trading with daily and weekly time frames, it will be difficult if you have to use a time frame of 5 minutes or 15 minutes.

But whatever it uses time frame trading, the most important thing is the result that is getting a consistent profit for a certain period. This article exemplifies the selection of time frame trading which considered suitable from the perspective of trading strategies with price action.

For Scalper Trader

With a scalping system, traders can open and close transactions in a fast tempo, or even just a few minutes apart.

Therefore, traders like this usually use Time Frame M1, M5, or a maximum of M30.

Especially for scalpers, they do not care about the quality of trading signals, but the number of entry positions.

With some technical indicators, they are entering with large lot size and stop loss level and narrow profit target.

Noise becomes unimportant, provided the volatility is high. For this reason, trading with scalping techniques has to use the smallest time frame possible to get maximum volatility.

For non-scalpers who don't know the exact scalping technique, low time frames can be ineffective and wasteful of margins. Even though a low time frame can also be a reference.

For Day Trader

Day Trading means opening and closing forex transactions on the same day, usually used Time Frame M30 to H1, plus H4 or D1 as a comparative Time Frame.

Daily forex traders usually after opening one or several trading positions, they try to close all their positions on the same day.

Daily traders may be the most many. The orientation on the acquisition of daily trading results is an attraction, especially for beginner forex traders.

Daily traders' time frames are attractive and provide many trading signals, besides forex brokers who enjoy spreads encourage daily traders to make transactions as often as possible.

If you trade with the price action method, the signals generated from these low time frames often contain noise or errors. Price action traders usually trade on a daily, weekly or at least 4-hour time frame.


For Swing Trader

With the Swing system, traders may open and hold transactions for several days, weeks or even months.

Therefore, the Time Frame used ranges from H4 to W1 and MN. Every trader can trade using one or more time frames.

Choosing the right trading time frame must adjust to the trading strategy used.

If you use a price action trading strategy, valid signals usually appear at higher time frames such as H4, D1, W1, or even M1.

Signals at high time frames reflect fairly clear market sentiment, while at low time frames sentiment changes.

We usually consider a low time frame to contain too many disturbing fluctuations, while we consider a higher time frame to better reflect overall price trends. Efforts to choose a Time Frame in the forex also consider these factors.

0 Response to "What is the best timeframe to profit from trading?"

Post a Comment

Iklan Atas Artikel

Iklan Tengah Artikel 1

Iklan Tengah Artikel 2

Iklan Bawah Artikel