What is the Best Time Frame Chart to Trade?
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#451: What is the Best Time Frame Chart to Trade?
In this video:
00:26 – The best time frame chart to trade?
01:31 – Even more time frame charts now available on MT5
02:08 – How I analyse the market each week
03:14 – Trade only at the close of a candle
03:42 – Trade at 5pm EST New York Time
04:21 – Where is the best candle pattern showing?
05:25 – Have a look at Blueberry Markets when looking for a broker
06:35 – Subscribe and share this video
What’s the best timeframe chart to trade? You’ve got so many options now, and it can be very confusing, so let me help you with that and more right now.
Hey, traders, it’s Andrew Mitchem, here at The Forex Trading Coach with video and podcast number 451.
The best time frame chart to trade?
And I get asked the question every week, “Andrew, what’s the best timeframe chart to trade?” And that’s it. People get very confused. They want to know the best. The answer is really there is no one best timeframe. But as a trader, I believe that you need to look at multiple timeframe charts.
Now, the issue that a lot of people have is they might be seeing a potential buy trade on one timeframe. And you might have seen a down trend and the trend looks like it’s reversing. The market looks very oversold, and you’re thinking, “I’m looking for opportunities here to buy it back up again.” And that may be on, let’s say, a one hour chart. And then you go to a four hour or six hour daily chart, and it’s clearly in a down trend. And you’re going, “Oh, but I’m now looking at this being overboard and it looking like it’s going to fall. But when I click through to a different timeframe, it looks like it’s going to start rising.” And that complete confusion and you’re not really sure what’s happening in the market.
Even more time frame charts now available on MT5
And I suppose now with MT5, if you’re on MT5, you now have the option of far more built in timeframe charts that MT4 never offered. As an example, you can trade two hour, three hour, 6, 8, 12 hour charts that on MT4, they were never there a standard timeframe charts.
And so potentially this leads to even more confusion for people because they got even more timeframes to scan through and you can even go down to the number of minutes on MT5 as well. By the way, I suggest that you don’t trade anything shorter than a one hour chart ever. It’s just not worth it.
So you can see the confusion that people have there.
How I analyse the market each week
So for me, when I analyse the market each week, at the beginning of each week, I go through the weekly charts and I look at the anticipated strengthen and weaknesses on different currencies and the currency pairs. In other words, where I’m seeing on the bigger timeframe, likely movement up or down for that week. I do the same each day based off the daily charts as well. So I say that within the day, the next 24 hours, the euros looking really strong and the U.S. is looking really weak. Therefore, the Euro, U.S. dollar, I’m anticipating it’s going to go up. Doesn’t mean to say, I’m just simply taking a buy trade, but it means to say that I’m preferring buy trades if I see them.
If my weekly analysis suggests that the Euro, U.S. is heading up and my daily does, then I’m really ideally focusing on looking for buy trades on the Euro, U.S. on maybe a 12-hour chart or four hour, whatever it might be that you are trading, still according to your candle pattern. But you can see the issue that people have with the confusion of different timeframes and what they’re saying.
Trade only at the close of a candle
So I think it’s also really important that you only trade at the close of a candle as well. That stops a lot of the confusion. And at that time everything’s set. Any indicators that you are using, whatever it might be, stastics, MACD, RSI, whatever it is you are using, that is set. And those levels do not move once the candle has closed. And what you can also do at that time is save yourself a lot of time.
Trade at 5pm EST New York Time
Now at 5:00 PM, New York time, at the close of the day and the open of the new day on the Forex market, you can trade the daily charts, the 12-hour, the eight hour, the six hour, and the four hour. I probably wouldn’t go any lower than that at that time of the day. And at that time of the day, you can scan through your charts. Look at those five timeframe charts and do that really quickly. And then for me, I also try to look at 5:00 AM, New York time, whereas I can look at the 12, the six, the four, the three, the two and even down to the one hour charts because it’s in the European timeframe at that time. But it’s really important when it comes to actually picking which timeframe you’re going to trade.
Where is the best candle pattern showing?
For me, it comes down to which of those timeframe charts is showing the best candle pattern and the best overall setup at that time. And with that, I want the cleanest passing. I want the most protection for my trade. So it has my trade banks at a certain level. It does have say the pivot point to protect it. It does have a round number to protect it, all these things. I want as much protection around my stop loss as possible. So with the aim of if the trade starts to go against me, it doesn’t go through these barriers, these different levels and hit my stop loss. So I want protection around my stop loss.
Likewise, I want the least path of resistance to my profit target. I don’t want it to start having to go through, on a buy trade, previous swing highs, or round numbers, et cetera. I want to make sure it as little barriers as possible to get to my profit target. So it’s all about which timeframe chart shows me the best set up, the cleanest pattern at that time.
Have a look at Blueberry Markets when looking for a broker And when it comes to your actual trading itself, have a look at Blueberry Markets. I strongly recommend Blueberry Markets. I’m finding them really good. I’m loving their MT5 platform as well, by the way, with all the extra commodities and indices, the other additional more exotic Forex payers as well. And just the ability to scan through those extra timeframe charts very easily. I’ve just personally created two profiles, one for Forex and one for everything else on my MT5 account. And I’ve got a little script that basically says, “Make all of these 12-hour charts.” And it just goes and puts them all at 12-hour charts. Or, “Make all of these six hour charts.” If you don’t have that, of course you can just create different profiles for each timeframe chart.
But the ability to trade a lot more markets, the ease of going through lots of different timeframe charts and just a bunch of great people, really good people, fantastic customer service. Again this week, I’ve received emails from people saying, thanks for recommending Blueberry, finding that they’re really good and people are happy with them. So that’s very important when it comes to selecting a broker. So I hope that helps.
Subscribe and share this video
Feel free to share this video or pass it around to anybody who you know might be struggling with different timeframe charts and understanding that within the Forex market or any other market. And I’ll see you this time next week. This is Andrew Mitchem here at the Forex Trading Coach. Bye for now.
Episode Title: #451: What is the Best Time Frame Chart to Trade?
Find out more about Blueberry Markets – Click Here
Find out more about my Online Video Forex Course – Click Here
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