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How to Successfully Use Forex Time Frames for Making Money in 2020

The Forex market holds tremendous opportunities to cash in on. Trillions of dollars are traded on it daily. So, there are tons of cash to be made. However, it seems that, in actual fact, most traders actually struggle to succeed in it due to various reasons. Some of those are due to a lack of skills and inability to control emotions. A substantial number of traders also fail just because they do not use the tools available at their disposal correctly. Forex Time Frames, as readily available as they are, are one of the most incorrectly used tools in Forex analysis and trading. In fact, many traders do not even know the best time frame for them to trade in.


The effectiveness of the different forex time frames depends on factors such as the trader’s strategy and style. In this article, you will learn how to pick the best forex time frame and use it effectively in your trading.


Time

Frames: What are They?


Time frames. So, what are they? A time frame, in Forex, refers to the period during which the Forex market is analysed. It can be as short as one or fifteen minutes and as long as one week or month. In total, the forex time frames offered by most Forex trading platforms are 9 and they are:


  • M1

  • M5

  • M15

  • M30

  • H1

  • H4

  • D1

  • W1

  • MN

You can choose from any of them to analyse your trades. All you have to do is to find the one that is most appropriate for your personality and trading strategy. However, before you do that, do you even know the usefulness of time frames?


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Benefits of Time Frames


Why are time frames useful in Forex? And how are they? Well, time frames are an invaluable tool in the analysis of the Forex market. As a Forexsignal trader, you need to always check the charts for patterns and to determine the direction of the market. With chart patterns, you can easily appreciate the performance of the price. That is, you need to study charts to discover trends so that you can ride on them.


However, all

that will be meaningless without the use of time frames. Time frames help to

put the information you see on the charts, the behavior of the price, and the

overall direction of the market within the right context. Also, it helps you to

study multiple, characteristic market conditions which you can capitalize on to

discover perfect tradable opportunities.


Now, how do you use them right? Read on.


How to Use Time Frames in Forex TradingHow to Use Time Frames in Forex Trading

How to Use Forex Time Frames Right


Which time

frame should you trade? That question is especially common among newbie

traders. The answer is not so clear-cut. To use the time frame that will be

best for you, you should consider the two important factors:


  • Trading Strategy

  • Trading Style.

It is also

important you note that you necessarily do not have to restrict yourself to a

single time frame. Instead, you can combine a multiple of them. For example,

you can be using a higher-time frame (e.g. H1) to identify the prevailing trend

and a lower-time frame (e.g. M10) to find perfect opportunities to enter the

market.


Now, let us show you how you can pick the best time frame that will be most suitable for your circumstances and objectives.


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Different Time Frames for Different Situations


If you are

holding onto a day job, you will definitely not be having enough time to

monitor the market. That is, your screen time will be restricted. Therefore, it

might be better for you to be trading higher time frames such as the daily or

monthly time frames. Based on your circumstance, the most suitable trading

strategy for you will be either swing or positing trading.


On the

other hand, if you have enough time to devote to analysing and monitoring the

market every day, you can be using the shorter time frames as low as the minute

or hourly charts. For you, scalping, with the numerous, quick

opportunities it seeks to capture, might be the best.


The daily, weekly, and monthly charts are for long-term traders. If you choose to be using them, you will not have to be observing the screens all the time. They can be used to determine trends which you can be riding on to clinch tons of pips. Long-term strategies and higher time frames help to capture multiple market moves. However, you will need to exercise a lot of patience. Finally, if you do not want to be going through the stress of managing time frames and doing analysis yourself, you might want to subscribe to a signal service. 1000pip Builder’s independently-verified signal service to your rescue. Their signals, based on expert analysis, have been adjudged as one of the top-performing in the industry. You can subscribe to their service and mentorship plan here.



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