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Trading with Time Frame

Trading with Time Frame

Oleh: newbi Pada 2015-12-28 20:53:57

Until this subject matter in your ability to do analysis of market movements have been very good. You have been able to perform technical analysis with various indicators even added a little Elliott or Fibonacci. We congratulate! At least you have learned to trade forex using the analysis and no longer do calculate the studs or analysis of guess-guess the mangosteen fruit.
 
If cared for well then you will find that on many charts shown used a variety of different time frame. Sometimes used timeframe D1 (daily) or sometimes used H1 (1 hour). What does it mean? Well in trading, often we do not just simply using one graph only for one currency pair eye where we trade. It is wise to trading with multiple time frames.
 
The use of various time frame will help us to determine two things:
Long-term global trend is going on
The right time to do the Buy/Sell execution
 
 
Both of the above are crucial part in trade. Imagine if you do not know the long-term trend is going on. And because the graph of 1 hour or 15 minutes you show the trend is being lead to a downtrend then we open sell position. While in fact the trend in the long run shows prices are going through the Ascension. Now what will happen?
 
In a short period of time (a few hours ahead) When Your technical analysis valid enough maybe your position will profit but not if you hold your position until the days for example. Because in daily price trend indicates the direction of the ride then slowly position the profit you will soon turn into minuses. That wretched again if you are not using a Stop Loss so likely Margin Call will occur. Up here the big hassles will come soon including the social effects that arise as you experience a loss.
 
Well this is where the importance of Us using multiple time frames in the trade. Most traders use a larger time frame to determine long-term trends such as a 4 h (4 hours) or D1 (daily). Whereas to determine uptake position then you need a shorter time frame could be 15 m (15 minutes) or H1 (1 hour). Now matter which one is used, it all depends with how your trading. Everyone has differing trading cycles. There is an open position and after days or even up to a month of the new position is closed (this is called a swing trader) or some are just within hours of its position already opened and closed many times. Let us learn one by one.
 
Swing Trader, Day Trader and Scalper
 
As already explained above that everyone has its own trading cycle. Some people due to time keterbatasaan can not see the price at any time (like me. ..) so choose to behave like a more passive policy a Warren Buffet.
 
There are also some people who have the time and sufficient access allowing it to monitor the price movement and try to take the maximum profit possible in the world of forex. Thus he tried to open a trading position daily.
 
Swing Trader
is they who decide how to trade with the first. The Swing trader tends to hold his position until berhar days up to several months. Some even hold his position up to one year! A trader with a pattern like this tend to wait until the price is at his best position and then aiming to open a number of the lot and put a big enough profit target. They usually open a position only at the very extreme conditions where prices are very high or very low rate according to the history of the movement in the last few weeks. Because these conditions are not too frequent then once they get the chance then chased the target is very large and well balanced with sufficient funds to withstand price movements because they usually determine the Stop Loss point is also larger. That's why the Swinger is often start trading them with hefty capital of about $3000 for a mini trading.
 
The Swinger more often use the daily time frame or 4 h to determine their long-term trend. For decision making Buy or Sell, usually they simply use graph 1 h only. The meaning of this: at a time when they were about to find a fitting moment to open a position then they will open the chart 1 d or 4 h them. Then they determine whether a trend is happening when in graph 1 d. If the trend shows an uptrend towards the situation with then they will simply look for a Buy and a sell position will not open at all.
 
Next they'll be looking for the right time to open post