Most Forex traders have no idea how or why Forex prices move and make key mistakes in the way they trade. In this article, we will look at three popular time frames and see what is the best time frame to trade in your trading strategy.
In Forex markets, all the fundamental supply and demand news will be shown in the price action and therefore the opinions of all traders, so we are going to divide the price action into 3 time frames.
Long-term trends
Large currency trends that last from a few weeks to many months and reflect the economic and political health of the country’s currency. These great fundamentals slowly shift from expansion to contraction and this is why these trends last so long.
Mid-term trends
While great fundamentals prevail in the long term, in the short term, the emotions of traders can make prices go up or down a lot and this can be seen in the intermediate trends, within the big trend, which can be with the trend. main or opposite to it. Usually these trends will last from a few days to a week.
The short-term trend
This is the action within a day and it really isn’t a trend at all, its just random price action. In one day prices can go anywhere and they do.
What is the best time frame to trade?
From the above, it is clear that trading the long-term trends can bring you the most profit with the least amount of work. All you have to do is get into the trend and hold it, but long-term trend tracking is only really suited to a trader who is patient and disciplined.
Trading medium-term trends can be very profitable and requires less patience and discipline than trading long-term trends. You can earn money in both time frames and which one you choose will simply depend on your personality.
I have not mentioned day trading yet and it is the most popular time frame to trade, but it does not offer any real chance of success. There is a large industry that sells junk robots and others, so-called low-risk intraday trading and scalping strategies, but they do not make money and intraday traders lose.
If you want to win at Forex trading, don’t make the mistake that most make and trade short term – trade longer term and you’ll have the odds on your side and you can make a great second income.
