When you start trading in Forex, you do not realize what the time frame is. The timeframe is a time interval of your chart that shows the trend at different times. For example, if you are trading with an hourly timeframe, you will get an update on what is happening on the market every hour. There are also many types of hourly timeframe and most traders like to choose a wider timeframe. They are very important in growing your career. This article will tell you how you can develop your career within the proper timeframe. You need to keep in mind that if you are trading with the wrong timeframe, you will only waste your time and money that could have been used in other ways.
Quality trade setups
You need to learn the proper way to find quality trade setups. Novice traders always take a huge risk to change their life. But, do you really think by taking the extensive risk you can secure your financial stability? In fact, the majority of the traders are trying to do so, and losing a significant portion of their investment. Instead of scalping the market, try to become a long-term trader. A Long-term position trader can easily execute quality trades without any stress. They know how to deal with their emotions and make a consistent profit.
Daily and weekly time frame
These are the two most important time frame yet ignored by the new Aussie traders. The term Forex Australia wouldn’t be so much popular if reputed brokers like Rakuten stayed still. They have extended their hands and offering a perfect trading environment to the retail traders. So, it’s your duty to study the daily and weekly time frame to find a precise entry point. It is true, daily and the weekly time frame is a little bit boring but there is no shortcut to this method. So how do learn all these complex things? You need to work really hard and if possible accept some help from the pro-Aussie traders.
Your timeframe should be elaborate
The first thing that you need to do in selecting your timeframe is elaboration. The problem with traders is they like to select a timeframe that is too short or too big. For example, many people prefer the minute timeframe because of its volatility. What they do not understand is- The same trend displays in the chart in minute intervals. The price movements seem to be quick and the traders fall for them. When you are trading with a too big timeframe, the price movement seems to be slow and you make decisions that can affect your trading strategy. Make sure that you choose the right timeframe that has both elaborations of the price chart and also tell you what is happening in real time. It is very important that you get the right information at the right time.
The weekly timeframe is good for beginners
If you have only begun your career and you do not know what to do, we suggest following a weekly timeframe. This way you can give yourself enough time to analyze the weekly trends. Most of the time, the weekly pattern repeat themselves on the market and it is a good way to improve your trading. When you set the timeframe in your platform, make it weekly. If you set it monthly, you will get the related information and set it for an hour or minute needs both skill and practice.
Should go along with your strategy
You are trading with a short-term strategy like day trading or scalping, and therefore, there is no way you can rely on the monthly timeframe. You will need a minute and even hourly timeframe for getting the live information. Our timeframe needs to be matching with the strategy that you decide to play. If your strategy needs longer time, the chart should have used a longer timeframe.
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