While practicing trading, you may have come across the term “forex time frames” but have you ever wondered- when is the best time to trade in forex? Well, analyzing the best time in Forex is not an easy task. In fact, if you have started as a beginner, you won’t be able to judge the time that can bring you profits from the FX market. So, here, in this article, you will come to know about forex time frames and how can you use it effectively in your trading strategy.
What is time frame in forex?
One of the best things about forex market is that it is open 24 hours from Monday to Friday. This opens up the biggest option for the people all over the world to practice trading at any time of the day according to their convenience. However, the ultimate success of a trader in the forex market not only depends on upon the time frame you choose to trade but also rests on how many times you use it in your strategic trading.
What times frames in forex available?
Before you start choosing a particular time frame for the forex trading, let’s discuss the multiple time frames available in the trading market
Multiple time frames in the forex market
- 1 minute
- 5 minutes
- 30 minutes
- 15 minutes
- 1 hour
- 4 hour
- 24 hours
- 1 week
- 1 month
These are all standard time frames where you will get a plethora of options to choose the best time in the forex trading. Most of the beginners prefer to choose 4 hours slot or one day slot to become a profitable trader. On the basis of successful and rich research on the forex market, it has been observed that most of the forex traders choose long time slots to practice trading in the forex market. They mostly follow daily, monthly and weekly charts for practicing trade in the Forex market.
The longer time frames have greater potentiality that offers meaningful and better results to the traders. A large number of trading movements that take place in the forex market every day is comprised of random noise, and therefore, they do not offer meaningful information to the trader. This is the reason that most of the experienced traders prefer to choose a longer time slot to get effective results.
To describe this fact in simple terms, let’s cite an example here, monthly charts have less noise than daily and weekly charts. On the other hand, weekly charts have less noise than daily charts. Those inexperienced traders who follow hourly charts incur a huge loss as it predicts the trends in the forex market wrongly.
Use of multiple forex time frames
Most of the experienced traders use multiple time frames so that they get enough time to read charts and develop a powerful trading strategy. This timeframe proves useful for all types of traders like momentum trader, breakout trader and risk trader. Multiple time frames in forex monitor across different time frames to offer a better idea about the forex market movement. You can choose to take various options as per your requirement, but it is best to choose the option of a longer forex time frame.
So, whenever, you are asked to choose a time frame for practicing trading in the forex market, always prefer longer forex time frames as this will give you better results and enough time to frame strategy in the forex market.