What timeframe should I trade on?
Many people understand the concept of “exchange speculator” quite wrong, because it is possible to call speculation a trading deal with a calculation for a month or even six months. Speculations are based on market forecasts, and the forecast can be for a long term. From myself, I will say that the more long-term fix api trading promise a high profit potential, since it is much easier to forecast the weather long-term than for a week. We are more confident that in six months there will be winter and it will be cold, rather than in a week it will be raining, aren’t we? The situation in the financial market is similar – the long-term trend is not so difficult to forecast. Everything depends on the time interval and the timeframe on which the analysis is conducted.
A timeframe is one of the key indicators that affects the overall percentage of the fix apitrader‘s profitability. Each strategy should be based on this parameter, because the results on atemporary interval do not guarantee the yield growth on the second one. Therefore, I recommend you to take into account the key features of each of the timeframes.
I recommend you to use the following timeframes for stable trading:
Suitable for intraday trading, when your strategy involves short-term speculative trading in the foreign exchange fix apiforexmarket. At this timeframe, technical indicators work, and as for the patterns, they should not be paid attention to, since the combination of tools on older timeframes is much more significant.
Suitable for intraday trading and is used for swing trading. If you work on this timeframe, then the list of tools for work is much broader. Patterns already work here quite accurately, and you can apply both technical and fundamental analysis. I even recommend to anyone who starts his acquaintance with the market, to use this interval to start with, since it is able to bring you closer to the real market conditions.
If you trade in opposition, then this timeframe is for you. Among all the timeframes, the trading signals on this interval are the most significant and strong ones. Therefore, if the signals that indicate purchase appear on the hourly chart, but globally on the daily timeframe there is a downtrend, then I would not advise you to trade against D1. All methods of analysis work here, especially patterns, because the whole market sees them and knows about them. Therefore, if you see a reversal bar on the daily chart, you can safely enter following this trade signal.
Personally, I use this timeframe as a filter for D1 and nothing else. Even if you want to invest very long-term, the weekly interval will not tell you the answer to this question. When 10-20 candles are formed, new fundamental data can be released that will be able to unfold the trend in the market and make it much easier to manage positions on the daily chart.
The choice of a working timeframe should be similar to the development of your trading strategy. Speculative algorithms should also be based on speculative intervals and this is logical. Therefore, I recommend you to resort to the popular strategy of “4 screens” (
http://strategy4forex.com/simple-forex-strategy/forex-strategy-trade-the-slope-system.html) so that your forecast was more accurate and profitable. Always filter out the received signal on the older timeframe. Such an approach will facilitate additional risk control. Personally, I use two types of timeframes in my fix api trading, namely H1 and D1. Thus, I analyze the assets on the first timeframe and check the direction on the older.