Beginners Guide : You Must Need to Know About Forex Chart Timeframes...!

Most accurate timeframes for highly volatile forex currency market

Highly volatile fluctuations of currency market attracts Speculators to Forex market as a currencies are highly sensitive with changing interest rates and political happenings. All this factors including Economic calender data leads to high volatility of currency pairs. Traders who can speculate in right direction can take advantage of future price movements.

Actual required time-frames for trading :

Before you enter in position to hit a trade, you must understand first-when you are going to exit the market.  Any trader cannot hold position indefinitely. So here trad-able time-frame will decide how long you wish to hold a position for certain time. 

This is a personal decision which has to be made by the trader depending on his or her risk against equity deposited to analyse market.

A general rule: 

Smaller the time frame you trade, more time is needed to be devoted to monitor market.

Someone who day trades tends to be more in touch with the market swing and going on with the market as a positions are opened.  In the other hand position trader does not have to monitor the market so intensively.

Same way... Longer time frame used in trading, the more risk is involved if and only if the lot size of trades mismatched against deposit. This simple because market had more time to move against them. 

Using trends in terms of time measurements for understanding positioning of trades.

1.primary trend

A primary trend sustains the longest period of time.  Its time measurements can be from 6 months to 1 year.  This major trend we can spot easily on bigger time frame charts such as a daily,weekly or monthly time-frames. Long term trader can trade according to advance chart reading strategies following fundamental factors of current market Scenarios.

2. Intermediate trend

As compare to primary trend, there will be counter cyclical trend of time duration from 1 month to 6 months. Trader can hold a position for several weeks in terms of profit.  This types of trend can be admitted by using H4, D1 and W1 time-frames. Knowing intermediate trend is very important for trader for positioning trades for limited time-frame.

3.Short term trend

Short term trend can last for a few days to as along as a month. Short term trend leads with H4,D1 mainly.

Best market conditions for using bigger time-frames.

Range-bound time-frame

Its a common knowledge that financial market spends most of their time for bouncing back and ranges between support and resistance prices. 

Range-bound time slot can be very profitable when market is ranging. Two contact points of support and resistance can be measured at the end of week with accurate pattern readings with bigger time frames. Closing market hours is the weakest time slot trades and that can be encashed with no obstacles with any data...  Here just we need to determine gap up and gap down by doing accurate chart reading.