The importance of time frames in the currency market
You should ask yourself an important question while trading the currency market.
What is the time frame that you should trade?
Time frames in circulation are very important, and also when determining time frames.
Not only does it define an appropriate time frame for establishing the deal, but it also includes setting time frames.
Which enables you to know the position of the trade that you are trading in.
In the Forex market, time frames are 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, daily, weekly and monthly.
These designations refer to the time periods that one candle needs to form on a time frame.
If you draw one candle on a 1-minute time frame, it will take one minute.
While a new candle is formed every hour, “on the bezel”.
Trading in the currency market :
When trading on the currency market over time frames, you should monitor the market for a period of time.
Watching the market on different time frames is an important matter that will help you while trading.
So choose a specific currency pair and keep monitoring it for some time.
This is to get to know the nature of this pair’s move on multiple time frames.
As you follow the pair, you will find this pair going through a number of recurring patterns.
For example, currency pairs tend to occur on small time frames to being more volatile.
A large amount of this volatility is faded in the currency pair in large time frames.
After a while you will discover that you can follow several different time frames for the same pair.
Time frames and their impact on deals :
Some currency traders are satisfied with observing a time frame and trading on another time frame.
Others, traders, prefer to continue to examine a large number of time frames before entering into a deal over a specific time frame.
However, the majority of traders prefer to check a number of time frames and trade on one frame.
One of the good strategies is to use the daily framework, but you have to plan the deal within the hour frame.
This strategy allows you to see the details of the price movement during the day.
This in turn led to the emergence of certain models on the daily framework that can be used in planning trading deals.
You can decide whether to trade on a daily time frame or not, depending on the conditions the market shows you on the hourly frame.