Most Forex traders have no idea of how or why Forex prices move and make important mistakes in the way they trade. In this article we will look at three popular time frames and see which is the best time to trade in your trading strategy.
In Forex markets, all basic supply and demand news will be shown in the price campaign and thus also the opinions of all traders, so let's split the price campaign into 3 time frames.
Long term trends
The major trends in currencies that last from a few weeks to many months and reflect the economic and political health of the country's currencies. These large foundations are slowly changing from expansion to contraction and that is why these trends last so long.
Interim term trends
While large fundamentals prevail in the long term, in the shorter term traders can cause prices to rise or fall too far and these can be seen in intermediate trends, within the big trend that can be either with the main trend or opposite. . These trends usually last from a few days to about a week.
The short term trend
This is the promotion within a day and is really not a trend, it is just a random price promotion. Prices can go anywhere in a day and they do.
What is the best time frame to trade?
It is clear from the above that long-term trade trends can bring you the greatest amount of profit with the least amount of work. All you do is follow and hold on to the trend – but long-term trends only really suit a trader who is patient and disciplined.
Trading medium-term trends can be very profitable and requires less patience and discipline than acting on long-term trends. You can earn money in both time frames and the person you choose simply depends on your personality.
I have not mentioned day trading yet and it is the most popular period to trade in, but it does not offer you a real chance of success. There is a large industry that sells junk robots and others, so-called day-risk and low-risk scalping strategies, but they do not lose money and day traders.
If you want to win in Forex trading, don't make the mistake that the majority makes and trade in the short term – trade in the longer term and you have the chances by your side and can earn a great second income.