Selecting the time frame is always a compromise. In any case, it is desirable to monitor multiple frames together. Getting a comprehensive overview of the behavior and direction of the market. And we can better assess incoming trading signals.
Time frame (or Time Frame) is simply the length of time a candle (comma) on the chart. This means that if a candle on the chart represents 1 minute, then do business within the time frame of 1 minute.
The most common time frames are:
- 1 minute M 1
- M 5 5 minutes
- 15 minutes M 15
- 30 minutes M 30
- 1 hour H 1
- H 4 4 hours
- 1 day D 1
- W 1 1 week
- 1 month MN
Poor choice of time frame is usually one of the causes of failure, at best, unfulfilled wishes of traders. Therefore, we should pay sufficient attention to this issue. For newcomers to forex trading, there are two main drive motors. The first is the desire for quick riches and the other is the fixed idea that I must be constantly in the market if I want to get rich quick. For this reason, very often choose small time frames, which allow very often deal with relatively little risk. The smallest time frame but it is not always optimal for beginning traders.
But how to know which time frame I have to trade me? First and foremost, we need to realize that when I feel comfortable trading. Remember that the issue of timing is very subjective, and where one feels good, it may not suit another. For one time frame is very fast H-1 and the second too slow.
Trading time frames are divided into 3 types:
- long
- short-term or swing
- intraday
Analysis of different types in the table below:
| The time frame or style merchant | What is a merchant | Disadvantages | Benefits |
| Intraday (daytrading) | Minute intraday traders use charts, such as 1 minute or 5 minutes, etc. | Higher fees (spreads) since you are doing more deals.Daytrading is very time consuming and physically demanding style of trading. The limited gains because of the need to withdraw from the market at the end of the day. | Many business opportunities. You do not have overnight or over the weekend and have a clear head. |
| Short-term or swing | Swing traders use hourly charts (4 hours) and holds a trading position from a few hours to several days. | The risk of holding positions overnight while you sleep. | More business opportunities. Swing trading is statistically the most profitable style of trading. |
| Long-term (positional trader) | Long-term traders watch the daily and weekly graphs. Most of the weekly chart shows a major trend on the daily chart and schedule an input. The position held by a few weeks to several months. | Stores require a larger stop loss and thus the need for more capital. Usually only a few trades a year. | You do not follow the charts during the day.Less trade means less taxes to pay the broker. Time-consuming than style. |
From the table it is clear that the choice of a suitable time frame, among other things a matter of compromise between options (willingness) to spend on the computer, 16 “hours a day and the amount of your capital.
The smaller time frame, the more time you devote monitoring charts, the more psychological and mental stress, the more shops and even those failed, the price is relatively small stop loss, but also relatively small gains. It is also fair to say that the smaller the trading time frame, the greater the weight of our stores have also SPREADS.
In contrast, the larger the time frame you choose, the less time you spend at the charts, but the more you need to account for your business.
Personally, I suggest you - try all trading timeframes, to see which one suits you best in terms of your psyche, but also in terms of the size of the expected market movements, hence the height of the hazard to your account. Eventually you will find that although trading time frame such as H-1, yet still follow the H 4 and D 1 It is good and useful to track multiple frames at once – have an overview of what does and how the market behaves at higher frames than just business. This helps us to have a better picture of market behavior as a whole and we will be better able to evaluate incoming trading signals.
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