Which time frame charts should I look at?
In this video:
00:23 Different Timeframe Chart Issues
01:28 How To Make Technical Trading Easier
03:14 What Works For You
Are you confused about what timeframe Forex charts to be looking at?
If that sounds like you, listen up I've got some great news for you.
Hi traders, Andrew Mitchem here, the Forex trading coach and today is Friday the 11th of September.
Different Timeframe Chart Issues
I wanted to talk about that issue about different timeframe charts because hardly a day goes past without I get an email from somebody, somewhere in the world saying, “Andrew, I'm just getting really confused looking at all the different charts on my platform. Not only do I need to figure out what currency pairs to trade, I don't need to try and figure out what timeframe charts to trade and they're all telling me different messages, how do I get around it?”
Well, really you need to figure out what type of trader you are and experiment to start with.
You know, figure out whether you like the shorter timeframe charts or the longer timeframe charts or a combination of both and really it's about finding what works for you. The great thing about the way that I trade and the way that my clients trade is that because we use price action and technical analysis, the actual strategy and the understanding of the market can work on any timeframe. I've got traders that trade five minute charts, some even trade one minute charts and 15, 30, right up to people that trade daily charts, weekly charts, monthly charts. It's finding that combination that works for you.
How To Make Technical Trading Easier
One thing I would say is that to make technical trading easier, I would strongly suggest that what you do is only look for a new chart setup, a new potential trade only on the completion of a candle. If you're trading a 15 minute chart, the only time you're looking for potential new trade setup is on the close of a 15 minute candle. If it's a one hour chart, it's only on the close of that one hour candle. The great thing about having that methodology behind your trading is it means that you're not scared to leave your charts. You're not staring every single price movement and every single pep up and down, worried about when to enter.
That is one of the benefits of using candle patterns and candle analysis over multiple indicators or crossing over, which could happen at any time. That's why I strongly suggest you do that. You look at, if you're say trading a one hour chart, you only look at the close of every one hour. It means that you know that right now as I'm recording this, it's five past two in the afternoon here in New Zealand. I've just looked at the one hour charts, that's why I'm recording this now after they've gone. I know I've got 55 minutes until 3:00 o’clock my local time.
At that time, I can look at the one hour charts and the six hour charts, because the six hour charts close at 9:00, 3:00, 9:00 and 3:00 my local time. That just makes life so much easier. What I also suggest you do is, when you see a chart pattern like a good technical setup on the timeframe chart, let's say a 15 minute chart, trade off that 15 minute chart. Don't worry so much about what's happening on other timeframe charts, otherwise you'll get yourself completely confused. If the trade setup looks really good on that 15 minute chart, take it and trade and manage that trade off of 15 minute charts.
What Works For You
Really you need to discover what works for you. If you're a scalper and you like the shorter timeframe charts of say five, 15 minutes, even up to an hour, so if you're a scalper, someone who likes to trade the one, five and even 15 minute timeframe charts, you have to expect to be spending more time watching the charts because you need to be there when the candles close, actually at your computer. You also need to accept that the spread which is the amount that you pay your brokers into the trade is likely to become a bigger proportion of your overall trade.
Whereas if you trade the longer timeframe charts, say like 12 hour charts or daily or weekly charts, the spread really becomes quite an insignificant amount and the amount of time you need to spend actually at your computer, at your charts becomes significantly less, but it's finding what combination works for you. Personally, I trade one hour charts, four, six, eight, twelve, daily, weekly, monthly and that will cover 95% of my trading timeframes. It's what works for me and it allows me to plan my day and plan my life around my trading and it all works in beautifully together. Find what works for you.
If you need help with that, what I suggest you do is, jump on one of the webinars that I hold each week. I hold webinars for new traders, and webinars for more experienced traders or people that are more frustrated and almost at that wanting to give up stage, but know that there's a way there somewhere. If you have any questions you'd like me to discuss on future videos and podcasts just like this, just email me, [email protected] or fill in the box, I think there's a box probably below this video here where you can ask me some questions about topics you'd like me to discuss and help you with.
That's it for now. Have a wonderful weekend. Look forward to talking to you this time next week.