There are many different time frames to choose from, when trading currencies. Different ones will suit different Forex traders, with each one presenting different opportunities to the next. It is important to choose the best time frame for you to trade Forex within, so that you can maximize your chances of success and your profits too.
Since there are many trading sessions with different markets being more active during different times, a Forex trader should be aware of their own time zone when choosing currency pairs to trade and time frames to trade within.
There are many different time frames that you can trade within. The one that you trade Forex within, will ultimately depend on your Forex trading strategy. For example, if you are a scalper, you will most likely trade within 1 minute time frames.
Whichever one(s) you decide to trade currencies within, you should try to look at the bigger picture too. Remember that it is important to take into account the Forex market’s overall trends, so that you can be aware of where the market is heading. Of course if you are a scalper, you probably won’t be interested in this since you will be trading within extremely short-term time frames. As a scalper, you won’t really be that interested in looking at wider ones since you will be placing many orders each day. However, if you use a swing trading strategy or another medium-term trading strategy or even a long-term trading strategy, you should really study wider time frames too.
If you ever find it difficult to profit using the ones that you choose to trade within, then you may want to consider changing up your currency trading strategy and selecting wider ones to trade Forex within. You ultimately should choose ones to trade within where you find it the most easiest to find trends. The wider the time frame, the safer you are generally, which is why longer-term Forex trading strategies are the most ideal for beginning traders and investors. Scalping and other short-term currency trading strategies are best avoided, for beginners.
Always follow trends, after all, “the trend is your friend” especially if you are just starting out. Currency pair price trends tend to follow economic cycles, it is worth noting and some trends can be very strong, lasting years in some cases. This is why long-term trends are typically safe bets. Once you have discovered a trend within your chosen time frame, you should then look for suitable points of entry and exit, which should be easy once you have actually discovered a trend.
In conclusion, it will really depend on the individual Forex trader, which times frames are the best to trade currencies within. You should really just focus on choosing ones that you find the most easiest to find trends within. Everyone is different and everyone has a different situation. Your Forex trading strategy will determine which ones you choose to trade within really, but ensure that you don’t find yourself struggling. If you ever do find yourself struggling to find trends, simply expand your time frames while also taking into account when the Forex market is most active (particularly for the currency pair or pairs that you are trading).