It is true that forex trading market is full of opportunities, but it is also evident that sometimes certain approaches don't work for all traders. It depends on the personality or risk characteristics of traders. Traders should always keep in mind that a successful trading system is only profitable with currency pairs along with best forex time frames to trade.
In foreign exchange trading there are a number of time frames available and the traders just only have to analyze that which one is the best time frame for them to be successful in this exciting trading business. The most common time frames to be used in day trading are 1,5,15 and 30 minutes time frame. In this post, the traders will be able to go through all time frames in detail.
What is the best timeframe to trade forex?
In answer to this there can be a number of time frames in forex trading, but in this article, the readers will get the best one only.
- 1 minute
This time frame is not so good. In forex, the traders always pay 3 or 5 pips spread and in most of the occasions 1-minute time frame doesn’t give that opportunity. It is also not so efficient in finding good intraday trends.
- 3 minute
This time frame is also not so useful and quite similar to 1-minute time frame. With this time frame it’s hard to see any difference between small price swing and a big one.
- 5 minute
5-minute frame can be considered as the best forex time frames to trade. This time frame allows the trades to find the fast trades along with a significant movement to pay for the spread. It also makes a profit for the traders.
- 15 minutes
It is quite similar to 5-minute time frame, and it is also considered as the best forex time frame. With this, the traders can also hold winners for longer than 5 minutes one. Thus it can be a good choice for the forex traders.
- 30 minutes
30 minutes can also be used if any trader wishes to hold trade for almost 6 to 8 hours. In addition to that, this can also be sued in day trading.
Considering swing traders, they also use different time frames, and they are discussed below.
- 1 hour
This time frame is the right one when a trader holds a trade for 1-2 days. This time frame also allows the traders to trade with good risk-rewards.
- 2 hours and 4 hours
These are considered as the best forex time frames to trade when traders look forward to hold their trades up to 2 weeks or more than that.
- Daily time frame
It is ideal for the one who keeps him busy with his work and family and have very limited time to spend in the trade market every day. Also, it helps a trader to get proper idea.
In forex trading, there are a lot of choices for time frames, and it depends on the kind of trader you are. For an instance, if you are going to use technical analysis then you need large time frames. Thus it is crucial that all traders must know what they want and then chose the time strategically to earn more profit.