This article looks at the ways that you can choose the best forex charts timeframes.
When you use the forex charts to trade you need to consider the timeframe that you will be working with. The timeframe of the forex charts will determine the indicators that you can use and the parameters that you have to set. Before you actually look at the timeframe you should consider the strategy that you are going to use and the use of multiple timeframes. Once you have done this you should consider which timeframe you should be using.
The Strategy and the Forex Charts
The strategy that you choose will impact the forex charts that you use. If you are going to be using a long-term trading strategy then you have to consider the use of the long-term forex charts. The strategy that you use will also tell you about the chart timeframes that you should choose. The long-term charts will cover a number of different timeframes that you need to consider this.
The long-term charts can be the monthly or weekly charts. The trading strategy that you choose should tell you about the charts that you should use and what you should be doing on them. Each strategy will be different and they will look for different things on the charts.
The Use of Multiple Timeframes
There are a lot of traders who look at the use of multiple timeframes. When you use multiple timeframes you are going to be looking for different information on the different charts. The one chart will tell you about what you should be trading while the other chart should be telling you about the entry price that you need to use.
When you use more than one timeframe you have to be careful. You need to consider how the changing timeframes will impact the indicators that you have on the charts. You should also consider the changes to what you are looking for.
The traders who use more than one timeframe to trade with generally have the longer timeframe charts tell them about what they are going to be trading. The shorter timeframe forex charts will tell the trader about the entry point that they need to have.
Choosing the Right Timeframes
The timeframes that you choose to work with need to fit into the strategy that you use and the analysis that you can complete. There are certain technical indicators that can only be used on certain timeframes. You have to determine whether or not you are using one of these indicators. If you are then you have to consider what your options are. Will you be able to get the entry point you need if you change to a different timeframe or will you need to use only one timeframe?
You should also consider how comfortable you are with the timeframe that you are using. There are some traders who find certain chart timeframes to be too long or too short. If you are not comfortable with the timeframe that you are using, you will not be able to analyse the market correctly. You will also be less likely to follow the plan that uses this timeframe.