Selecting the correct and best timeframes for forex trading is the most underrated but an important choice. The timeframe on which trades are performed determines all aspects of your forex game. Aspects like the forex trading strategies and risk-management techniques affect the win rate and emotional discipline of the trader.
So, what are the best timeframes for forex trading? It all depends on whether you trade actively or not.
In forex trading, the timeframe for trading can vary from as little as a minute to as long as a month. Here are some details on the matter.
NOTE: Forex investments involve significant risk. Do not take the views mentioned here as financial advice. Please conduct thorough research before making any investment.
In the foreign exchange market, the timeframe represents each candle or bar on a graph or chart by the price action or movements. It can also be referred to as the time period, ranging from ultra-short to very long.
For instance:
1-minute (M1), it means one bar is one minute of price action. Similarly, when it is 1 hour (H1) or daily (D1), it signifies that one bar is one hour or one day of price action.
Every time horizon presents a different market perspective, even for the same exchange rate.
Timeframes: M1, M5
Best suited for: Scalpers and highly active traders
These apply to traders who are able to monitor the chart on a continuous basis.
These are believed to be the best timeframes for trading in the forex market, particularly for newcomers and intermediate traders alike.
These are suitable for traders who view market status after longer periods, particularly useful for those occupied with other work.
Here’s a look at the best timeframes:
Professional traders don’t trade on one timeframe. They practice multi-timeframe analysis, for instance:
If you are a beginner to the forex trading world, the following timeframes will prove to be better at a certain point.
Here’s why:
Smaller time periods will cause new traders to chase clamor or overtrade.
Before selecting a time range, ask yourself these questions to narrow down what best fits your needs:
Each person has their own timeframe span, and there is no one size fits all. However, the best forex trading time depends on your trading characteristics and forex goals:
Here are a few examples:
If you feel uncertain, begin and focus your skills on H1 and/or H4 and adjust as your experience increases. However, a profit-earning trade is based not only on time, but also on discipline, risk management, and consistency.
