Forex Charts and their Time-frames
Description: This article looks at which charts different traders will use based on the time-frames they cover.
When you are using forex charts you need to consider the time-frame they are covering. It is possible to choose between different time-frames for you charts. However, you need to ensure that the time-frame you are looking at will work for your trading. Certain trading styles require a longer time-frame to be looked at. You should see who should be using which time-frames, as this can affect how well you trade.
Short Time-frame Forex Charts
There are some forex charts that show data on a minute-by-minute basis. Short-term forex charts are any charts that offer information in time-frames of less than an hour. The most common of these short time-frame forex charts are the 5-minutes charts and the 15-minutes charts.
There are certain traders who will benefit from these charts. These traders are the day traders and those using short-term trading strategies like scalping. Some swing traders will also use these charts, as they help determine the best time to enter the market. If you are not using these short term trading strategies and styles, then these charts are not the right ones for you.
The 1-hour chart is actually the most popular of forex charts. There are two main reasons for this, and they are the reliability of the chart and the ability to note short-term changes. Short-term movements are best seen on these charts.
All trading styles can benefit from these charts, but there are certain strategies and plans that benefit the most. Swing traders and long-term traders should get the most out of these charts. Day traders can use these charts if they are looking at trades which last a few hours. However, this is not ideal for the day trader, as they need more regular data. The long-term trader will usually use these charts to look at momentary trades or to look for a good entry point into the market.
4-hour charts are not used by that many traders. The traders who generally use these charts are those who complete long-term trades which will last a day or more. In fact, these traders will usually only use these 4-hour charts to find an entry point into the market. By using these charts, the long-term trader will be able to find the ideal time to enter the market in order to get the most profit.
Daily Forex Charts
Daily forex charts are used only by long-term traders. These traders will use these charts to identify trends, but not for finding their entry points. Other traders may occasionally use these charts when analysing the market, but this is rather rare.
When to Use Which Chart
There are certain times when it is recommended that you use a different chart from your regular one. When you are looking to start trading a currency pair, it is best to take a look at their daily charts. Many traders recommended that you use short time-frame charts to find the best entry times.
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