In my practice, I use it mostly large ranges, and also recommend to sell it to them: it timeframes H1-W1
Let me explain why these intervals:
Of course, each of you can trade at least for 1 minute chart, at least for a 5-minute, even for a day. But because the market there is always some kind of trend (directional movement), it is always better to trade in his direction, the higher the range, the better! It is likely that the trend will win is the senior of the interval is very high. Consequently trade better in the direction of this particular trend for older intervals. As you probably heard many times: "The trend is your friend", in fact it is, but the trend of large your friend intervals, as if you do not it take into account the trade against it, then your position will simply shut down one after another minus.
Now, let me describe below some basic provisions relating to the choice of the time interval forex strategy:
1) trade better is based on the trend of the older slots, ie H1-W1, why - described above.
This priority is as follows:
Interval MN> W1 interval and so on> D1> H4> H1> M30> M15> M5> M1
Of course the ideal interval - monthly schedule, but since these transactions can be concluded 1-2 times a year and will have to put a huge foot, then this trade does not suit us exactly ... Therefore the best option - all the same intervals from 1 hour to the D1, relying on closing candles on W1.
2) The larger the time interval forex strategy, so really easy to sell!
The reason for this statement - the trend in large timeframes stable enough, hence all the "noise" in the form of unnecessary vibrations you just will not notice it. But the profitability of trading on such an interval - 200-500 points, with a stop loss raene 50-100 points! This is the value for a 4-digit brokers, such as Forex4you.
3) When you trade in small ranges, the trader usually sits and constantly nervous and trader in the medium and large intervals trades 2-3 times per week, while looking at the monitor only periodically - at the closing hour, 4 hours, daily candles and tP.
That is, so trading is only for the perfect forex signals your forex trading strategy!
4) The situation in the forex market are often repeated (including patterns forex), forex signals strategy, graphic combinations (breakdown channels, trend lines, retest and etc.). And the older time interval, the less likely we will see a repeat of this, and therefore the forex strategy will be more stable, and signals the most stable work out.
5) Trading on the D1, for example, you will see the same picture for a long time (patterns, models of graphics, signals forex indicators), and therefore it also will see the majority of professional traders and to make a decision on the conclusion of the transaction all together will be one and the direction. What about the M1-M5 can not say, as most pros do not trade at these intervals.
6) signals major temporary timeframes of course take precedence over smaller time intervals, so even finding the perfect signal at small intervals, you run the risk of loss if a large range feedback signal appeared in the same period!
Despite all the reasons described above, I definitely know that most new traders will say: "All is well documented, but the value of stop-loss on H1-D1 is very big and I just can not afford with such a small deposit (in 20- $ 100) to set a stop-loss at 70-100 points (to 4 digits). A trade without stop losses - it is very dangerous ...
Partially agree, but there is another option: open forex deposit according to the size of your deposit, and a small depot, I definitely recommend Cent Forex account! - This is the best account for learning forex and small deposits.
And at the expense of small intervals - lower than H1, I will say that they are only required to enable any trader could find a better entry point, relying on long intervals.
