Why you should trade in the higher time frame

Why you should trade in the higher time frame
January 17 13:32 2019 Print This Article

There are two types of the time frame in the Forex industry. The lower time-frame and the higher time-frame. Every timeframe serves like a window and through that, you can see what is happening in the industry. If you are confused as to why you might trade with the higher time-frame, you need to read this article. This article will tell you the advantages that you can get when trading with the higher time frame. Keep in mind that the lower time-frame is also used but it is mostly used by professionals. It requires precision, skill and knowledge if you want to understand the market with short views. The higher window is easy and it is best to for beginners because they do not need any analyses. You can get an idea by observing your chart and plan your strategy.

Quality trade execution

The lower time frame traders are known as scalpers. They are often known as the risk takers in the Forex market. If you truly believe trading is the perfect profession for you, learn to trade in the higher time frame. Daily time frame analysis will always give you high-quality trading signals. Most importantly you will be able to recover your trading loss within a very short period of time.

So how do learn to trade the higher time frame? First of all, try to learn how to use Forex demo account. Stop risking your real money to master the basic things of this market. Demo trading environment will help you to learn all the details of this trading industry within a very short period of time. However, if you still prefer to trade the lower time frame data, make sure you know the proper method of multiple time frame analysis.

It gives you more view of the industry

There is information coming in every moment in Forex. If you trade with a lower timeframe, you will be amazed to see the amount of information that is coming to you. You also need time to know which information is true and which is false. It is very hard to decide in a small time span and that is why a longer timeframe will open the opportunity to widely view the industry. If you are looking only at the garage of a big house, you will never know if it’s a garage or it is a part of the house. Your knowledge will be incomplete and that is why a wider view of the information helps you to understand the volatility. The more you know of Forex, the more chance you have to pull out your tricks and win money.

It removes the craps from your chart and understanding

One of the best thing about using a higher timeframe is, you can remove the rubbish that you do not need in your analysis. Every day there are much information coming and many news is released. If you trade with an hour timeframe, you will get confused as what you shall trade with. A higher timeframe will erase the work for you and only show you the important volatility and the price trend. The pattern will tell you what happened and how you can place your trades. The more precise you can be, the more chance you have to win money.

Which higher timeframe should I use?

Depending on your skill and understanding, you can choose from daily to the monthly timeframe. We advise you to trade with daily timeframe because it will help you to understand the volatility. As they give you a view of the past industry movements, it will also help you to plan your strategy. Use the weekly time-frame to analyze the past month of your trading and forecast the possible volatility. A monthly timeframe is for the professional but you can also use them when you can understand the daily timeframe.   

  Categories:
view more articles

About Article Author