Most traders in the Forex market does not have a clue about how and why prices move in the Forex market and make key mistakes in the order in which they trade. In this article we look at three popular time frame and see which is the best time to trade in your trading strategy.
On the forex market all the major news of supply and demand will be shown in the price action, as well as the views of all traders, so let the price action break down into 3 periods.
Big trend against the currencies, which last from a few weeks to many months and reflect the economic and political health of the country's currency. These are great foundations slowly changed from expansion to reduction, and therefore these trends continue for so long.
Intermediate term trends
While large foundations dominate in the long term, in a shorter time traders emotions can raise prices up or down, and it can be seen in the intermediate trends within the big trends, which can be either with the main trend, and opposite to it. Typically, these trends will continue for a few days to about a week.
This action within a day, and in fact not from the & # 39 is the trend simply random price action. On the day the prices can go anywhere, and they do it.
Which is the best time to trade?
From the foregoing it is clear that trade in long-term trends can give you the greatest amount of profit at the slightest about the & # 39; the amount of work. Everything you do – to enter the trend and hold it – but the long-term trend, which adheres to, really suits the trader, patient and disciplined.
Trade in intermediate trends can be very profitable and requires less patience and discipline than trade in long-term trends. You can make money in both the time frame and the one you choose will simply planted to your personality.
I have not yet mentioned the tonic trading, but it is the most popular time to trade, but real chance of success you do not. There is a large industry that sells junk robots and other so-called trading strategies with low risk and scalping, but they do not make money, and day traders lose.
If you want to win at Forex trading, do not make the mistake that makes the most of, and trade short term – Trade longer term, and you will have the odds on your side and you can get a great second income.