The use of time frames for forex trading is quite subjective. It depends on each trader’s methods and strategies. A scalper who normally uses a timeline of 1 minute and 5 minutes will definitely feel peculiar when attempting to trade swing-style traders who use a time frame of 4 hours and a day. The use of time frames depends on traders, according to BabyPips.
For true scalpers, it is certainly difficult to change the way of trading that has become a habit. In addition, long-term traders that use daily and weekly time frames would be challenging if you have to use a timeline of 5 minutes or 15 minutes. Many traders still hesitate about an acceptable time frame in forex trading. However, whatever time period trading you use, gaining consistent profits is the most important thing.
Check out how to consider the suitable time frames in forex trading:
Daily Time Frame Trader (Day Trader)
Daily forex traders usually use a time frame of 5 minutes to 1 hour. After opening one or several trading positions, they try to close all their positions on the same day. Daily traders may be the most numerous. The orientation on the acquisition of daily trading results is an attraction, especially for beginner forex traders.
Daily traders’ time frames are indeed attractive and provide many trading signals besides forex brokers who benefit from spreads tend to encourage daily traders to make transactions as often as possible. If you trade with the price action method, the signals generated from these low time frames often contain noise or errors. Price action traders usually trade on a daily, weekly or at least 4-hour time frame.
Time Frame Scalper
Especially for scalpers, they do not care about the quality of trading signals, but rather the number of entry positions. With some technical indicators, they are entering with large lot size and stop loss level and narrow profit target. Noise becomes unimportant, provided the volatility is high.
For this reason, trading with scalping techniques does have to use the smallest time frame possible to obtain maximum volatility. For non-scalpers who don’t know the exact scalping technique, low time frames can be ineffective and wasteful of margins. As in the following 5-minute chart, with sideways and narrow range conditions, it is very difficult to enter with valid trading signals.
Time Frame for Price Action Strategy
Choosing the right trading time frame must be adjusted to the trading strategy used. If you use a price action trading strategy, valid signals usually appear at a higher time frame (4 hours, daily, weekly). Signals at high time frames reflect fairly clear market sentiment, while at low time frames sentiment tends to change. However, if you are accustomed to and are quite satisfied with certain time frame trading that can generate consistent profits, you should not change time frames. Changing the time frame reference takes time to adjust.
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