May 05 2020 2
Depending on your trading strategy for achieving your specific objectives, the best times to trade forex will vary. The following table summarizes the time frames of the factors used by various traders to define the patterns and to enter the business data, which are further explored:
|Day trading||Swing trading||Position trading|
|Trend chart||30 minutes - 4 hours||Daily chart||Weekly chart|
|Trigger chart||5 - 60 minutes||2 - 4 hours||Daily chart|
Most common times to trade forex
Traders use different strategies to determine the best time frame used for forex trading. For example, the swing trader would hold trades for a much longer period than the trader of day trading. Read our guide to get a basic understanding of the different forex trading strategies.
Best times to trade forex position trading strategy
The table above summarizes the best trading time frames of positions for various trading strategies. Under the definition of "long-term", fluctuations occur every day or every year.
Many beginner traders tend to keep this method away because of the long time of transaction implementation. However, from many accounts, the short-term trading (day trading) method may be difficult to successfully execute, and it normally takes longer for traders to develop strategies.
The position trading (long-term) method can view monthly charts for trends and weekly charts for ideal entry points.
Once the trend on the monthly charts is determined, traders can try and enter weekly charts in several ways. Many traders want to use price action to determine trends and enter positions, but they can definitely use indicators.
Best times to trade forex swing trading strategy
After traders are comforted on the long-term chart, they can consider shortening the trading method and the required holding time. This may bring more variability to a trader's approach, so money and risk management issues should be dealt with before shortening the time frame.
Between long-term trading time and short-term trading, swing trading falls into medium. One of the major advantages of swing trading is that forex traders could take advantage of both methods without suffering all the drawbacks. As a consequence, swing trading became the popular market entry method.
Swing traders need to check the chart twice a day in case the market changes significantly. This provides traders with the convenience of no need to constantly watch the market during the trading process. Once a chance is detected, traders stop the trade and monitor the trading progress at a later stage.
The strategy profits from the fact that the trader often looks at charts regularly enough to capitalize on potential opportunities. It removes one of the drawbacks in the daily / weekly graphs of long-term trade generally.
Best times to trade forex day trading strategy
Generally, the potential profits of short-term trading are small, resulting in tighter stop loss levels. This means a higher probability of a failed trade. In order to trade using a very short-term method, it is recommended that traders adapt to the long-term method and swing trading method before going with the short time frame.
In the same way as long-term trading, day traders will measure patterns on the hourly chart and find opportunities for entry on' minute' time frames including chars of 5 or 10 minutes. You can use a one-minute time frame but you need a process with caution because it can be very unpredictable and hard to work with the variance in the one-minute map. Once the trend has been determined: price action or technical indicators, traders can once again use different triggers to start positions.
The time frame for trading forex is various. Depending on your trading strategy, you will find the best times to trade forex for you.