Different Currency Time Frames
Knowing how to analyze the different time frames can become handy when trading in the Forex market.
It is a simple process, even though it sounds more complicating and confusing than it is. It is the process of looking at the same pair and price, but looking at them using different time frames on the market. A pair can exist on a number of different time frames — which include the daily, the hourly, 15 minute, and even the 1 minute time frames.
Different traders have different opinions and feelings about how a pair is being traded because of the different time frames. What’s even more surprising is that all of the traders can be correct with their opinions. Since the times basically meet at a certain point, even though one is trading on the 4 hour chart, another trader might be on the one minute, and when compared they can both be right because of the time difference and the changes in the ups and downs for the trade.
This also can complicate the trading market because the trades can sometimes become confused when looked at in the 4 hour time frame. This is because traders will see the sell signal on the trade in the 4 hour, and then hop over to the 1 hour and see that the price of the trade is slowly but surely moving up at the same time.
How to Eliminate this Confusion
You will want to stick with just one time frame to eliminate any confusion that might come along with jumping from time frame to time frame. It will probably be best for you if you try to ignore the other time frames. You should be able to use the multiple time frame analysis to your benefit while trading which helps you gain money in the long run instead of running around blindly, not knowing which time frame is best.
You should try to focus on just one time frame, and you can find out how and which one works the best for you. You can choose the specific time frame that works best with your trader’s personality — which provides you with the best possible time for trading. You can also look at the time frames based on the same currency pair to make better and more educated decisions on which time frame to go with, depending on your currency pair in the trade.