which chart time scale is better for trading

this is santosh. i am using meta trader for forex trading and i am confuse one thing that is which timescale chart is better for forex trading i mean which periodicity chart is better that is 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, daily, weekly and monthly chart is better for forex trading. please tell me sir. because i am using technical indicators so which time scale is better technical indicators and forex trading.

Hey Man,

Which time frame is the best? That depends on your account size, risk tolerance (i.e. about 30-50 pip stop on a 15 min chart vs. a hundred or more on daily char), the amount of time you can trade (i.e. all day on the 5, 10, 15, or hour charts or if you are only able to devote a few minutes a day say trading on the daily close), your personality, and so many more factors.

Some people use a larger time frame (i.e. hourly) to decide which way to go, and then enter on a shorter on (i.e. 15 min). Others make a trade on the 15 min and then zoom out to see how long to stay in.

Then there are those who examine MANY time frames for what looks good using their method.

BOTTOM LINE: There is no "best time frame" as the time frame you use is determined by your trading style.

Regards,
Agent 2005

You might want to ask yourself, as I look at the same data but on different time frames, which chart seems to make sense to me. Just look at price and time. Nothing else on the chart. Look back for as many lengths of time as you can, on as many pairs as you can.


Some traders think that lower time frames are too noisey, too random. Others like the action. Some think that higher time frames cause the trader to miss good swings where profits can be made. Others feel that longer time frames give a sense of over all direction.

As stated in posts above... find what works for you. You have a lot of things to consider that are individual to you only. What time frame fits into your life?

Lou

thanks for telling but i take eur/usd 1 hour chart with Bollinger Bands then buy is better for trade and the same time i take eur/usd 4 hour chart with Bollinger Bands then sell is better for trade so what is the correct and which side is better for trading.

An interesting idea. I would say use a demo account and check it out for a few weeks. If what you are doing with work with backtesting then that would be another way to test it.

Lou

It depends on your personality. You have to feel comfortable with the timeframe 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. But you shouldn’t feel that the reason for the pressure is because things are happening too fast that you find it difficult to make decisions or so slowly that you get frustrated.


When I first started trading, I couldn’t stick to a timeframe. I started with the 15-minute chart. Then the 5-minute chart. Then I tried the 1-hour chart, the daily chart, and 4-hour chart.

Finally after a long period of timeframe unfaithfulness, I felt I was most comfortable trading the 1-hour charts. The timeframe as longer, but not too long, and trade signals were fewer, but not too few. I had more time to analyze the market and didn’t feel rushed anymore.


On the other hand, I have a friend who could never ever ever trade in a 1-hour timeframe. 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 give him enough time (but not too much) to make decisions based on his trading plan.


Another buddy of mine can’t figure out how I can trade a 1-hour chart because he thinks it’s too fast! He trades only daily, weekly, and monthly charts. His name is Warren Buffet. You might know him.


You have to decide what the correct timeframe is for YOU.

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