As someone interested in being successful at day trading, one of the questions that would have passed through your mind would be “What is the best time for day trading forex?” Many time frames may be used to create graphic trading charts. Some even employ non-time-related indicators, such as the number of transactions made or the price range. It might appear to be an overwhelming collection of options. Picking the optimal time frame or other variable for a specific trading style and kind of asset becomes quite straightforward if you trade responsibly. Trading is made even easier when you use the Bitcoin Equaliser app.
How New Traders Select a Time Frame
Like many inexperienced traders, you may spend days, weeks, or even months experimenting with various time frames and parameters in search of the one that produces a profit. You might experiment with 30-second and 5-minute charts, for example. Then you experiment with all of the non-time-based alternatives, such as tick charts and trade volume.
When none of these provides a profit, you may believe you made a mistake and attempt them all again, figuring you missed something the first time. If you still can’t locate a lucrative option, you tweak your trading system or approach a little more and test all of the time frames again.
The reasoning behind this tenacious endeavour to select the best chart time frame or other trading element is flawed. It’s that each trading strategy or technique—and, most likely, each market—has one ideal time period or other variables with which it works best.
If that idea seems plausible to you, beware: you may be about to join the never-ending time frame hunt from which many novice traders never escape.
How the Pros Select a Trading Time Frame
Professional traders choose a time period in less than 30 seconds, if at all. Their time frame selection is neither influenced by their trading method or approach, nor is it influenced by the market in which they trade. It is determined by their trading personality.
Traders that make several deals during the trading day, for example, may choose a shorter time frame. Those who only make one or two trades every trading day may choose a lengthier time frame.
Traders may also change their time window on a particular day based on how actively they trade.
Professional traders do not waste time looking for the ideal time frame since their trading is based on market characteristics, which apply to all time frames. Prices are affected by the amounts of supply and demand.
Is the Timeframe Actually Relevant?
A price pattern that has relevance on a two-minute chart will also have same value on a two-hour chart when examining a certain time frame in relation to your trading approach. If it does not, it is not a pricing pattern that is meaningful.
There is nothing wrong with the time frame if your trading strategy or technique is not profitable. Your trading method or strategy is the issue.
Charts of Trading Based on Factors Other Than Time
Trading parameters that are not time-based should be utilized only with trading systems that are designed to handle them.
A trading system, for example, maybe built utilizing a 100-tick chart. That is a special system in which a move occurs after 100 transactions.
Time is irrelevant if a trading pattern is predicated on the extent of a price change. Choose a chart, such as a Renko chart, that allows you to base the chart on price movement. It provides the trader with a clearer picture of patterns, trends, and elements such as price reversals that occur during the trading day.
There’s nothing wrong with making use of variables that aren’t time-based if that’s what you choose. They may be more aesthetically appealing and hence simpler to read for you. Just don’t assume that any particular chart style will offer you an advantage.
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