Scalp & Swing

What makes you go with CCI Divergence over MACD Divergence? I've read on them both and noticed you went with the CCI signal when the MACD didn't seem to agree.

Kudos, by the way.

Wile E

Sometimes I set a Take Profit Level say near a pivotal point or so, 30 - 100 pips away from the entry point dependent which currency pair will be traded.

Best regards
FXcube

There isn't any compelling evidence!

It's only my kind of experience and how I like to trade the forex market! In the market situation #80 I think that USDCHF is ranging between 0.914 - 0.925 (or upper and lower lines of BB) at the moment before a trend (up or down) will coming up.

I know a lot of traders who prefere the RSI or the MACD divergence.

Kindest regards
FXcube

hi
pls can you add SL and TP when you add signals
and my account 280 $ only what lot i used when open order and how mach orders open ?
thanks and i will work with you
i wait you

see #71, #80, please.

USDCHF, H4, 2011 April 01
USDCHF, H1, 2011 April 01

Long @ 0.9153

Exit @ 0.9284 (DR3)

Profit: +131 pips

Sorry almsre

I don't trade often with a stop loss due to the fact that the most orders could be hedged and I need more dynamical exit points depending at the current market situation, the vola the momentum...etc. But FF is full of excellent tips about how to set an Exit Point or a Stop Loss. Take a look there, please. You can work out some Exit Points near the pivotals at the next CCI Tops or Bottoms.

With a 280.-$ Account may be you could trade with maximum 0.001 lot sizes within the 2% rule and around max. 3-5 open orders. If you can't trade 0.001 wait until you have 1'000.-$. With 1'000.-$ you can trade 0.01 lot sizes. If you are a beginner trade the first time only with a demo account.

Hope it helps!

FXcube

thanks for your reply
what main with 0.001 lot ?
1 cent or 10 cent
if 1 cent it very hard but if 10 cent its easy

EURUSD, M5, 2011 April 01

Example: Swing Trading
CCI(14) Tops & bottom Trading
DR1 1.4130
TP @ 1.4220 was triggered.

Profit: + 107 pips

Normally I would have set one entry long more at MS2 1.4085 (next CCI Bottom) but I wasn't at home by this time.

Hi almsre

See #88, please. This is an example with TP.

Long @ 1.4113. Then market has generate higher volatility and a higher momentum. In this case a TP was set 10 points below the pivotal point (DR1 1.4230). You could also take the lower PPs at MR1 1.4201 or the DP 1.4172

Pivotal Points
Professional traders and market makers use pivot points to identify potential support and resistance levels. Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change.

Read more: http://www.babypips.com/school/forex...#ixzz1IIKDcpib

Kindest regards
FXcube

Contract sizes
1 lot = 100,000 units of the currency bought or sold
1 minilot = 10,000 units bought/sold = 0.1 lots
1 microlot = 1,000 units bought/sold = 0.01 lots
1 nanolot = 100 units bought/sold = 0.001 lots

0.01 lots is 0.10 cent per pip, say 100 pips is 10$
0.001 lots is 1 cent per pip, say 100 pips = 1$

Instaforex and Forexhunt offer 0.1 cent per pip with cent accounts, but I don't know these brokers. Oanda could be also an option.

Link:
http://www.babypips.com/school/calcu...ion-sizes.html

See also #91, please.

FXcube

Forex Lots, pips, risk, leverage. margin, spread, order types, swap, etc all explaine

Contract sizes
1 lot = 100,000 units of the currency bought or sold
1 minilot = 10,000 units bought/sold = 0.1 lots
1 microlot = 1,000 units bought/sold = 0.01 lots
1 nanolot = 100 units bought/sold = 0.001 lots

How many dollars won/lost per pip moved, and why?
The first listed currency in a pair is the base currency, and the second is the quoted currency, e.g. in GBPUSD, GBP is the base currency, and USD the quoted currency.
The rate quoted is how many units of the quoted currency can be bought with one unit of the base currency, e.g. if GBPUSD = 1.9029, then USD 1.9029 can be bought with 1 GBP.
Hence, when you enter a long position (perform a buy transaction), you are buying the base currency by selling the quoted currency. A short position (sell transaction) is the reverse.
You buy at the ASK price, and SELL at the BID price (see the “Risk and spread” section below for more info).

xxxUSD pairs
1 lot = USD100,000 contract for any xxxUSD pair. 1 pip = 0.0001 dollars (i.e. 0.01 cents) movement. Hence each pip moved results in a gain or a loss of 100,000 x 0.0001 = USD 10.00

USDxxx pairs
For a USDxxx pair, e.g. USDCHF. 1 lot = CHF100,000 contract size, so each pip moved results in a gain or a loss of 100,000 x 0.0001 = CHF 10.00
But if your account is denominated in USD, and the current rate for USDCHF = 1.1335, then each pip moved results in a gain or a loss of 10.00 / 1.1335 =
~ USD 8.22

JPY-based pairs
The exceptions are JPY pairs, where 1 pip = 0.01
So for USDJPY, 1 lot = JPY 100,000 contract size, so each pip moved results in a gain or a loss of 100,000 x 0.01 = JPY 1,000
But if your account is denominated in USD, and the current rate for USDJPY = 100.56, then each pip moved results in a gain or a loss of 1,000 / 100.56 =
~ USD 9.94

Non-USD pairs, i.e. xxxyyy (where neither xxx nor yyy is USD)
1 lot = 100,000 yyy. So if each pip is 0.0001, then it results in a gain/loss of 100,000 x 0.0001 = 10 yyy.
If your account is denominated in USD, and the exchange rate for USDyyy is currently 1.2000, then 10 yyy = 10 / 1.2000 = ~ USD 8.33
Think through the above step-by-step, until you understand it. It’s logically consistent.

How much risk per trade?
There are two factors that determine RISK:
(1) How many pips your stoploss is away from the entry point
(2) How many lots you buy/sell
Let’s say that you have $10,000 trading capital.
The experts say that you should risk only 1%-2% of it in each trade.
So 2% of $10,000 = 0.02 x $10,000 = $200.
Now let’s say I want to buy GBPUSD (1 lot = $10 per pip, see section above)
The question is: how many lots can I buy, to keep my risk at $200, and if I want to set my stoploss just outside a swing point, which happens to be 40 pips away from entry?
Answer: if I trade 1 lot, then 40 pips x $10 per pip = $400 risk.
So to keep the risk at $200, I must trade half of this, i.e. 0.5 lots.
Now, 0.5 lots = 5 minilots = 50 microlots = 500 nanolots, you can work on whatever basis you like.
So the formula is: number of lots = [trading capital] x [percent to risk]/100 / [pips between entry and stoploss] / [dollars per pip]
Let’s do another example using the formula:
– Trading capital = $500
– Percent to risk per trade = 2% (= $10)
– This time you want to place your stoploss is 100 pips from entry
– We’re trading EURUSD, which is $10 per pip (per lot traded)
So the answer is: 500 x 2/100 / 100 / 10 = 0.01 lots (or 1 microlot)
Working backwards to check: at 0.01 lots, the movement is 10 cents per pip. So if we lose 100 pips (from entry to stoploss), the loss is 100 pips x 10 cents = $10, which is 2% of our $500 account.

Here are two very important points:
1. Leverage (explained in the next section) and risk are unrelated, except that leverage determines the maximum amount of risk you can take. But by keeping your risk at 1%-2%, you should never come near to using up your available ‘margin’.
2. In the examples above, it doesn’t matter whether your broker is offering (for example) 50:1, 100:1 or 200:1 leverage. Your risk is still $200 in the first example, and $10 in the second example. The leverage is irrelevant.
So the key is: focus on keeping the risk low, and you don’t have to worry about leverage, it will take care of itself.

Leverage and margin
The margin requirement reflects how much ‘spare’ money you need to have in your trading account, in order to make a trade. By spare money, I mean money that’s not ‘tied up’ in other currently open trades.
Leverage and margin work inversely with each other, thus:
– If the broker offers 10:1 leverage, then the margin requirement is 10% (or, alternatively, it means that you can trade a USD 100,000 contract for every USD 10,000 in your account)
– If the broker offers 50:1 leverage, then the margin requirement is 2% (or trade a USD 100,000 contract for every USD 2,000)
– If the broker offers 100:1 leverage, then the margin requirement is 1% (or trade a USD 100,000 contract for every USD 1,000)
– If the broker offers 200:1 leverage, then the margin requirement is 0.5% (or trade a USD 100,000 contract for every USD 500)
– If the broker offers 400:1 leverage, then the margin requirement is 0.25% (or trade a USD 100,000 contract for every USD 250)
and so on.
So the formula is: margin = 100 / leverage

Example – for xxxUSD pair
Let’s suppose that:
– you want to buy or sell GBPUSD, which is currently priced at $1.90
– you currently have $10,000 in your trading account
– your allowable risk per trade = 2% (= $200)
– your stoploss is 40 pips away from entry
– your broker is offering you 100:1 leverage
Calculate your risk, as explained in the previous section:
Position size = 10,000 x 2/100 / 40 / 10 = 0.5 lots
The margin requirement for xxxUSD is given by the formula = [#lots] x 100,000 / [leverage] x [exchange rate]
Then the margin you need is 0.5 lots x $100,000 per lot / 100 leverage x 1.90 = $950, which is 9.5% of your $10,000.
That leaves 100 – 9.5 = 90.5% of your account, i.e. $9,050, available for use in other trades.
If the leverage was only 50:1, then the amount required would be 0.5 x 100,000 / 50 x 1.90 = $1,900, or 19%, i.e. at 50:1 you need twice the margin, compared to 100:1, and so on.
So at 50:1 you are “tying up” 19% of your account balance, leaving the remaining 81% free (“unused or available margin”) to place on other trades.
As you can see, trading at 2% risk leaves plenty of money (available margin) in the account, so leverage isn’t really a major consideration. And note that the risk is always $200, no matter what the leverage is. If the trade hits the stoploss, you will lose $200, no more, no less.

Example – for USDxxx pair
Let’s suppose that:
– you want to buy or sell USDJPY, which is currently priced at 115.18
– you currently have $20,000 in your trading account
– your allowable risk per trade = 2% (= $400)
– your stoploss is 25 pips away from entry
– your broker is offering you 100:1 leverage, and smallest denomination allowable is a microlot
Calculate the dollars per pip, for each lot:
= 100,000 x 0.01 / 115.18 = ~ $8.68
Calculate your risk, as explained in the previous section:
Position size = 20,000 x 2/100 / 25 / 8.68 = 1.8433 lots
But broker allows only microlots, so round down to 1.84 lots
The margin requirement for USDxxx is given by the formula = [#lots] x 100,000 / [leverage]
In this case = 1.84 x 100,000 / 100 = USD 1,840.00, or 9.2% of the $20,000 account. Hence unused margin = $18,160.00 or 90.8%

Risk and spread
Let’s re-visit risk, so that we can factor spread into the equation. Spread is the difference between the BID and the ASK price. So if, for example, GBPUSD is currently 1.8500 / 1.8504, the BID is 1.8500, the ASK is 1.8504, and the spread is 4 pips.
You must buy at the ASK price, and SELL at the bid price. That effectively means that, in the example, you lose 4 pips (or $40 per lot) every time you trade GBPUSD roundtrip. The spread gets pocketed by your broker.
When you close a trade (or when your profit target or stoploss is reached), you perform the opposite operation. So if you originally bought GBPUSD, then you must sell it to close the trade. And vice versa.
The price shown on a chart is generally the BID price (although MT4 allows you to optionally display the AK price as a second horizontal line).
You need to factor the spread into your risk calculations. For example, if your stoploss is 40 pips away from entry, and the spread is 4 pips, then your real risk is 40+4 = 44 pips. That’s the number that you should use in the [pips between entry and stoploss] in the Risk formula above.

Order types
Market orders are placed immediately, at the currently quoted prices.
Pending orders will trigger automatically when the price you specify is reached. There are 4 types of pending order: buystop, buylimit, sellstop, selllimit.
– A xxxstop order anticipates that price will break out, or continue in the current direction, when the price you specify is reached.
– A xxxlimit order anticpates that price will reverse, or bounce back, when the price you specify is reached.
– buyxxx orders are triggered when the ASK price reaches your specified value (because you must always buy at the ASK price).
– sellxxx orders are triggered when the BID price reaches your specified value (because you must always sell at the BID price).

All order types can have a profit target (“take profit”), and/or stoploss, which will automatically close the position, immediately the specified price is reached. Otherwise the position must be closed manually.

Swap
Swap (aka ‘Rollover’, ‘Carry’, ‘Interest’) is a debit paid, or credit earned, as a reflection of the difference between the interest rates applicable to the countries in the currency pair being traded. Depending on whether you are long or short, and which country has higher interest rates, you may be charged or credited interest.
Swap rates are calculated daily at 1659 EST (4:59pm New York time). Trades that have been opened before 1659 EST and held open past this time will be subject to swap rates.
Swap rates are tripled on Wednesday at 1659 EST. This is because, when placing a trade in the spot Forex market, the actual value date is two days forward. A deal done on Thursday is for value Monday, a deal done on Friday is for value Tuesday, and so on. On Wednesday the amount of swap is tripled in order to compensate for the following weekend (during which time swap is not charged because trading is stopped).
If you buy the currency with the higher interest rate (aka the ‘carry trade’), the interest gets credited to your account (psitive); if you sell it, the interest is debited (negative). The basic daily swap rate should be the difference between the annual cash rates , divided by 365. However, brokers tend to credit interest at a lower rate, and debit interest at a higher rate (to make money for themselves).

http://www.6thorigin.com/forex-lots-...explained.html

Trading Multiple Time Frames In FX

by John Kicklighter

Most technical traders in the foreign exchange market, whether they are novices or seasoned pros, have come across the concept of multiple time frame analysis in their market educations. However, this well-founded means of reading charts and developing strategies is often the first level of analysis to be forgotten when a trader pursues an edge over the market.

In specializing as a day trader, momentum trader, breakout trader or event risk trader, among other styles, many market participants lose sight of the larger trend, miss clear levels of support and resistance and overlook high probability entry and stop levels. In this article, we will describe what multiple time frame analysis is and how to choose the various periods and how to put it all together. (For related reading, see Multiple Time Frames Can Multiply Returns.)

What Is Multiple Time-Frame Analysis?
Multiple time-frame analysis involves monitoring the same currency pair across different frequencies (or time compressions). While there is no real limit as to how many frequencies can be monitored or which specific ones to choose, there are general guidelines that most practitioners will follow.

Typically, using three different periods gives a broad enough reading on the market - using fewer than this can result in a considerable loss of data, while using more typically provides redundant analysis. When choosing the three time frequencies, a simple strategy can be to follow a "rule of four." This means that a medium-term period should first be determined and it should represent a standard as to how long the average trade is held. From there, a shorter term time frame should be chosen and it should be at least one-fourth the intermediate period (for example, a 15-minute chart for the short-term time frame and 60-minute chart for the medium or intermediate time frame). Through the same calculation, the long-term time frame should be at least four times greater than the intermediate one (so, keeping with the previous example, the 240-minute, or four-hour, chart would round out the three time frequencies).

It is imperative to select the correct time frame when choosing the range of the three periods. Clearly, a long-term trader who holds positions for months will find little use for a 15-minute, 60-minute and 240-minute combination. At the same time, a day trader who holds positions for hours and rarely longer than a day would find little advantage in daily, weekly and monthly arrangements. This is not to say that the long-term trader would not benefit from keeping an eye on the 240-minute chart or the short-term trader from keeping a daily chart in the repertoire, but these should come at the extremes rather than anchoring the entire range.

Long-Term Time Frame
Equipped with the groundwork for describing multiple time frame analysis, it is now time to apply it to the forex market. With this method of studying charts, it is generally the best policy to start with the long-term time frame and work down to the more granular frequencies. By looking at the long-term time frame, the dominant trend is established. It is best to remember the most overused adage in trading for this frequency - "The trend is your friend." (For more on this topic, read Trading Trend Or Range?)

Positions should not be executed on this wide angled chart, but the trades that are taken should be in the same direction as this frequency's trend is heading. This doesn't mean that trades can't be taken against the larger trend, but that those that are will likely have a lower probability of success and the profit target should be smaller than if it was heading in the direction of the overall trend.

In the currency markets, when the long-term time frame has a daily, weekly or monthly periodicity, fundamentals tend to have a significant impact on direction. Therefore, a trader should monitor the major economic trends when following the general trend on this time frame. Whether the primary economic concern is current account deficits, consumer spending, business investment or any other number of influences, these developments should be monitored to better understand the direction in price action. At the same time, such dynamics tend to change infrequently, just as the trend in price on this time frame, so they need only be checked occasionally. (For related reading, see Fundamental Analysis For Traders.)

Another consideration for a higher time frame in this range is the interest rate. Partially a reflection of an economy's health, the interest rate is a basic component in pricing exchange rates. Under most circumstances, capital will flow toward the currency with the higher rate in a pair as this equates to greater returns on investments.

Medium-Term Time Frame
Increasing the granularity of the same chart to the intermediate time frame, smaller moves within the broader trend become visible. This is the most versatile of the three frequencies because a sense of both the short-term and longer-term time frames can be obtained from this level. As we said above, the expected holding period for an average trade should define this anchor for the time frame range. In fact, this level should be the most frequently followed chart when planning a trade while the trade is on and as the position nears either its profit target or stop loss. (To learn more, check out Devising A Medium-Term Forex Trading System.)

Short-Term Time Frame
Finally, trades should be executed on the short-term time frame. As the smaller fluctuations in price action become clearer, a trader is better able to pick an attractive entry for a position whose direction has already been defined by the higher frequency charts.

Another consideration for this period is that fundamentals once again hold a heavy influence over price action in these charts, although in a very different way than they do for the higher time frame. Fundamental trends are no longer discernible when charts are below a four-hour frequency. Instead, the short-term time frame will respond with increased volatility to those indicators dubbed market moving. The more granular this lower time frame is, the bigger the reaction to economic indicators will seem. Often, these sharp moves last for a very short time and, as such, are sometimes described as noise. However, a trader will often avoid taking poor trades on these temporary imbalances as they monitor the progression of the other time frames. (Learn more about dealing with market noise, read Trading Without Noise.)

Putting It All Together
When all three time frames are combined to evaluate a currency pair, a trader will easily improve the odds of success for a trade, regardless of the other rules applied for a strategy. Performing the top-down analysis encourages trading with the larger trend. This alone lowers risk as there is a higher probability that price action will eventually continue on the longer trend. Applying this theory, the confidence level in a trade should be measured by how the time frames line up. For example, if the larger trend is to the upside but the medium- and short-term trends are heading lower, cautious shorts should be taken with reasonable profit targets and stops. Alternatively, a trader may wait until a bearish wave runs its course on the lower frequency charts and look to go long at a good level when the three time frames line up once again. (To learn more, read A Top-Down Approach To Investing.)

Another clear benefit from incorporating multiple time frames into analyzing trades is the ability to identify support and resistance readings as well as strong entry and exit levels. A trade's chance of success improves when it is followed on a short-term chart because of the ability for a trader to avoid poor entry prices, ill-placed stops, and/or unreasonable targets.

Example
To put this theory into action, we will analyze the EUR/USD.

http://i.investopedia.com/inv/articl...imeframes1.gif
Source: StockCharts.com Figure 1: Monthly frequency over a long-term (10-year) time frame.

In Figure 1 a monthly frequency was chosen for the long-term time frame. It is clear from this chart that EUR/USD has been in an uptrend for a number of years. More precisely, the pair has formed a rather consistent rising trendline from a swing low in late 2005. Over a few months, the spot pulled away from this trendline.

http://i.investopedia.com/inv/articl...imeframes2.gif
Source: StockCharts.com Figure 2: A daily frequency over a medium-term time frame (one year).

Moving down to the medium-term time frame, the general uptrend seen in the monthly chart is still identifiable. However, it is now evident that the spot price has broken a different, yet notable, rising trendline on this period and a correction back to the bigger trend may be underway. Taking this into consideration, a trade can be fleshed out. For the best chance at profit, a long position should only be considered when the price pulls back to the trendline on the long-term time frame. Another possible trade is to short the break of this medium-term trendline and set the profit target above the monthly chart's technical level.

http://i.investopedia.com/inv/articl...imeframes3.gif
Source: StockCharts.com Figure 3: A short-term frequency (four hours) over a shorter time frame (40 days).

Depending on what direction we take from the higher period charts, the lower time frame can better frame entry for a short or monitor the decline toward the major trendline. On the four-hour chart shown in Figure 3, a support level at 1.4525 has just recently fallen. Often, former support turns into new resistance (and vice versa) so a short limit entry order can be set just below this technical level and a stop can be placed above 1.4750 to ensure the trade's integrity should spot move up to test the new, short-term falling trend.

Conclusion
Using multiple time-frame analysis can drastically improve the odds of making a successful trade. Unfortunately, many traders ignore the usefulness of this technique once they start to find a specialized niche. As we've shown in this article, it may be time for many novice traders to revisit this method because it is a simple way to ensure that a position benefits from the direction of the underlying trend.

http://www.investopedia.com/articles...-timeframe.asp

Multiple Time Frame Analysen

Die Multiple Time Frame Analyse ist eine Form der technischen Analyse, bei der der Trader die verschiedenen Kursveränderungen eines Währungspaares beobachten muss. Normalerweise sind die Charts in verschiedenen Time Frames angegeben, was dem Trader ein besseres Verständnis darüber erlaubt, wie sich die Währungsoptionen bei wechselnden Marktbedingungen bewegen. Dank der Multiplen Time Frame Analyse kann ein Trader effektive Marktpositionen einnehmen.

In den meisten Fällen arbeitet man nur mit drei Time Frames – Wochencharts, Tagescharts und 4-Stunden-Charts, aber ein Trader kann sich auch für kürzere Time Frames entscheiden (4-Stunden-Charts, 1-Stunden-Charts und 15-Minuten-Charts). Generell nutzt man längere Time Frames, wenn man sich einen Überblick über das Marktverhalten verschaffen will, während kürzere Time Frames dazu dienen, Einstiegs- und Ausstiegspunkte genauer zu definieren. Will ein Trader große Gewinne machen, so muss er auch die großen Bewegungen des Marktes erkennen. Der Trader muss wissen, in welche Richtung es geht und mit welchen kurzzeitigen Bewegungen man rechnen muss, die man dann ausnutzen kann. Die Multiple Time Frame Analyse ist mehr als nur das Herausfinden von Hochs und Tiefs, sondern es geht um die Suche nach Kaufmöglichkeiten bei einem Aufwärtstrend und Verkaufsmöglichkeiten bei einem Abwärtstrend, dank derer der Trader bessere Gewinne machen kann.

Trader auf dem Spotmarkt arbeiten normalerweise mit Tagescharts, um den generellen Trend festzustellen, während anhand von Stundencharts die genauen Einstiegspunkte festgestellt werden. Range-Trader werden es wahrscheinlich schwierig finden, das AUD/USD Währungspaar zu handeln, das sich seit Anfang 2002 in einem Aufwärtstrend befindet, und vermutlich Verluste erleiden, wenn sie bei der gleichen Strategie bleiben, die sie in normalen Situationen anwenden. Obwohl es gelegentliche Tiefs gab, ist das Paar doch in den letzten Jahren stabil geblieben, was selbst Range-Tradern, die sich auf mittelfristige Trades spezialisiert haben, nur sehr wenige Aktionsmöglichkeiten geboten hat.

In solch einem Fall ist es das beste, eine Position einzunehmen, die dem Trend folgt und nach Kaufmöglichkeiten zu suchen, wenn die Kurse am niedrigsten Punkt sind. In dem Fall kann der Trader ein Fibonacci Retracement Level als Main Support Level nutzen, die Tagescharts verwenden, um eine grundlegende Vorstellung von der Richtung des Trades zu gewinnen, und dann anhand der Stundencharts die Einstiegspunkte festmachen.

Das Gute bei der Multiple Time Frame Analyse liegt darin, dass man sie selbst für Stunden-Trading mit Leverage anwenden kann. So kann beispielsweise ein Trader eines so hoch volatilen Währungspaares wie CHF/JPY mit Stundencharts arbeiten, um die Richtung des Trends auszumachen, und dann 15-Minuten-Charts verwenden, um nach Einstiegspunkten in Richtung des Trends zu suchen. Man sollte aber unbedingt mit verschiedenen Indikatoren arbeiten, um auch sicher zu gehen, dass die Währung in eine bestimmte Richtung tendiert, nur so kann man bessere Erfolge erzielen.


http://www.etoro.de/lernzentrum/mult...-analysen.aspx

What Time Frame Should I Trade?

One of the reasons newbie traders don't do as well as they could is because they're usually trading the wrong time frame for their personality.
New traders will want to get rich quick so they'll start trading small time frames like the 1-minute or 5-minute charts. Then they end up getting frustrated when they trade because the time frame doesn't fit their personality.

http://www.babypips.com/school/image...frustrated.png

For some traders, they feel most comfortable trading the 1-hour charts.
This time frame is longer, but not too long, and trade signals are fewer, but not too few. Trading on this time frame helps give more time to analyze the market and not feel so rushed.

http://www.babypips.com/school/image...onger-term.png
On the other hand, we have a friend who could never, ever, trade in a 1-hour time frame.
It would be way too slow for him and he'd probably think he was going to rot and die before he could get in a trade. He prefers trading a 10-minute chart. It still gives him enough time (but not too much) to make decisions based on his trading plan.
Another buddy of ours can't figure out how traders trade on a 1-hour chart because he thinks it's too fast! He trades only daily, weekly, and monthly charts.

Okay, so you're probably asking what the right time frame is for you.
Well buddy, if you had been paying attention, it depends on your personality. You have to feel comfortable with the time frame you're trading in.
You'll always feel some kind of pressure or sense of frustration when you're in a trade because real money is involved. That's natural.
But you shouldn't feel that the reason for the pressure is because things are happening so fast that you find it difficult to make decisions or so slowly that you get frustrated.
When we first started trading, we couldn't stick to a time frame.
We started with the 15-minute chart.
Then the 5-minute chart.
Then we tried the 1-hour chart, the daily chart, and the 4-hour chart.
This is natural for all new traders until you find your comfort zone and why we suggest that you DEMO trade using different time frames to see which fits your personality the best.

Read more:

 

1. Multiple Time Frame Analysis
2. What Time Frame Should I Trade?
3. Time Frame Breakdown
4. Long or Short?
5. Time Frame Mashup
6. Time Frame Combinations
7. Summary: Multiple Time Frame Analysis

http://www.babypips.com/school/what-...d-i-trade.html

You also have to consider the amount of capital you have to trade.
Shorter time frames allow you to make better use of margin and have tighter stop losses.
Larger time frames require bigger stops, thus a bigger account, so you can handle the market swings without facing a margin call.

Read more: http://www.babypips.com/school/time-...#ixzz1ISq5aSxj

Yes thats an important point. One other advantage of shorter timeframes is amount of positions/unit of time. This gives such methods a statistical edge, since at say M1 you will place a lot more positions then if you where focusing on H4, lets say for instance 30 times as many positions being placed on M1 in the same time as only one would be placed on H4. This gives the shorter timeframes the added advantage of faster gaining statistical data to conclude if what you are doing is working or not. Thats a big part of the logic behind why i trade M1. I found that going to even shorter timeframes is not viable, since the spread destroys the opurtunities for that. Otherwise i would trade s10 for sure. With very low spread (say around 0.7 or less) i wouldnt even care about candles and such so much, i would trade tick, probably without much indicators at all, for these very same reasons as i just mentioned.

Anyway, happy trading next week to you Cube, and the rest of you also!

EURUSD, Weekly, 2011 April 04

AUDUSD, Daily, 2011 April 04
AUDUSD, H4, 2011 April 04

Daily has forming a divergence & H4 CCI(14) Top.

Short @ 1.0393

EURUSD, H4, 2011 April 04

H4 CCI Divergence & Shooting Star.

Short @ 1.4235

...and hedge the upward movements at M15.

EURGBP, Daily, 2011 April 04
EURGBP, Weekly, 2011 April 04

Daily has forming a divergence. Might be it's not the end of this upward movement (see the weekly chart, please).

Short @ 0.8828

Nornally I'm not a friend of stop loss but in this market situation I would set a stop loss cos the weekly resistance line are slightly broken,... and enter Short again then at higher price levels.