Hello, dear visitors of my blog! Every beginner trader is faced with the question of how to choose a timeframe for a profitable trade? This article discuss ways in which we can determine the most suitable time frame for you!
What is the timeframe? Timeframe - a time interval of quotations on the chart of the financial instrument. That is, the time which includes one bar or candle. Here is an example graph of EUR / USD, timeframe H1 (1 hour). Each bar represents the price change for 1 hour. how to select a timeframe And this is the same graph, but of a smaller timeframe - M15 (15 minutes). Each bar reflects the price change in 15 minutes. Every hour bar (H1) consists of four 15-minute (M15). what timeframe forex The most popular among traders MT4 terminal has the following timeframes: M1 - 1 minute; M5 - 5 minutes; M15 - 15 minutes; M30 - 30 minutes; N1 - 1 hr; H4 - 4 hours; D1 - 1 day; W1 - 1 week; MN - 1 month. Now I think, understood that such a timeframe and with what it eats! How to choose a timeframe? Now we proceed directly to the selection of the time interval for the job. In my experience it can be done in two ways, equally effective. The first - on the basis of personal preferences. Second - on the basis of the effectiveness of trading strategies. 1 approach. Do you have a predisposition for trading on any certain range? Choosing timeframe is not so simple as it might seem at first! This choice affects the style of trading, at a time that you will spend at the computer screen, the emotional stress. Consider the details: A) from M1 to H1 - intraday style. Style trade in which transactions are opened and closed within the same day. The day can be carried out very large number of transactions, high intensity. Hence the great emotional stress, with the psychological aspect of trading small timeframes difficult, requires a lot of concentration and just exhausting. what timeframe Not everyone is able to withstand such a rhythm. While some like all the time, "feel the pulse". In this mode, it is difficult to keep track of a variety of trading tools, so you should focus on a few and become familiar with them. Usually choose the most liquid with small spreads (what is it?). Trade automation can make life easier for intraday traders, but more on that later. B) from H1 to H4 - medium-term trading. Transactions can last for a few hours and several days. Since there is no need to continually monitor the status of positions, the psychological burden on the trader is significantly lower. With this style, you can work on a large number of tools. If we take into account that stops the value and profits higher than in the day, it is possible to conclude that a smaller impact on the results of trade costs. (Although it depends on the method of trading), for example, due to the large spread, trading exotic currencies intraday simply unprofitable, and at mid-trade is already possible. B) of the H4 to MN - long-term trade and investment. With this style, you can forget about the deal for weeks. Suitable for people who do not want to spend a lot of time it is on the process of trade. Ideal for combination with another activity. On the one hand, the psychological burden is very low, so it does not require constant focus. On the other hand, the wait - very difficult. Not everyone is able to endure a month to open a position. We need a special mindset to work on these timeframes. As a rule, a large number of financial instruments used to work. This conditional division of trading styles and suitable timeframes. Nothing prevents work on H1 and hold positions for weeks. Everything is quite individually, so you should try to work on different intervals. What better time frame Experience required each trader. If you are still undecided timeframe, work a month on the M5, then a month on H1, and then a month to D1. Compare, know what suits you best and solve the issue. Besides, if you want to change the style, you will know what! Although it will take some time, but it is the most effective option to select - find what is right for you. 2 approach. This approach for system traders, to determine the trading tactics. If you have already developed a system, you need to know what the time frame for it better. There are systems that work on the same time slot - guess there is nothing here. But the most profitable systems work almost on all timeframes. You can only trade the EUR / USD intraday M15. And you can trade 8 currency pairs at H4. To define how to use your TC, is to test it on different instruments and time intervals. According to the test results to determine the most effective approach and make a profit. Not to be mistaken system traders, I recommend this article: "Why does not the system trading is profitable?". The same applies to advisers. If it is the purchase - certainly in the description of the robot is the author of the recommendation, which states, in what time frame to trade. It should simply be followed. Here are two completely different approaches to select a timeframe. If you have important psychological side, or trade in the most efficient for the system slot is simply not work, then choose for themselves the appropriate timeframe and seek to learn to make it on it! The natural balance - is very important for success in trading! Many professional traders consider the psychology of the main, from which the result depends. If the above written to you does not matter if you can trade on different timeframes, then the outcome of the trading system. in what timeframe to trade better Create the most effective environment for her, and follow her! On other important aspects of successful trade collected information in this article, I recommend to explore! In what time frame do I work? I'm working on the 3rd different TS, the transaction may last from a few minutes (it happens very rarely) to several months (often as not), mostly a few hours. All systems are used on the H1, although in some cases can go down to a smaller timeframe to clearly understand the situation. May and climb the larger, to evaluate the whole picture. That is, there is no hard limit, but the core still remains H1. Learn the story of the beginning of my trade here: "How I became a trader? Honest history. " The main conclusion for the reader believe that we need to try different approaches and gain trading experience, to test multiple trading styles. Then you will understand how to select a timeframe suitable for you! At the finish the translation KB of free space, and let myself relax a little, already night in the yard! All readers are invited to subscribe to blog updates by email in the form below, so you will learn about new materials immediately after their publication. Or add in social networks, where I was able to announce the posts and share other interesting things on stock trading. I wish you to become a profitable trader! Till!
