Use higher timeframe in price action trading

[Dwayne Buzzell]

When the novice traders enter the market, all they care about is the up and down of the market signal. It is true that the up and down movement of the Forex market is where the traders of the market make their money. But it does not randomly move. It follows some strict principles and the expert’s traders of the Forex markets have been trying to figure out when the market will move or it will remain steady. All the techniques and strategies, including the price action trading of Forex, are built on this basic principle.

When you are using price action strategy, it is important that you read the market and place your trade based on higher time frame. The lower time frame will give you many patterns and the whole chart will become a zig-zag pattern of clothing to you.

Why should you use higher timeframe?

Every forex masters in the Forex market, trade on a higher time frame. It is true when you are trading on a higher time frame, the market may seem still to you. It will take, sometimes hours, to show a movement. Most of the novice traders fall for this trap of little time and choose their chart based on lower time frame. Here are some important points to consider, before you think you start your trading based on lower time frames.

The lower timeframe is inaccurate: Lower timeframe provides the market movement to the traders in every single minute. As a result, the traders get only a partial view of the Forex market. If you want to increase your chance of Forex winning, you should trade on a higher timeframe. It is better and more accurate as it shows the integrated information of the price level in Forex market condition of specific times in the signal pattern. The Higher timeframe may consume sometime of yours, but at the end, it will give you a quality result with more trades winning in price action trading.

Most of the novice traders in the forex market look for trading signal in their IB broker platform by using the smaller time frame. They simply think that the more they will trade the more money they will make. But when it comes to real life trading they realize that in order to make a profit they need to execute high-quality trades in the market. Even most of the false signals are generated in the lower time frame and for this very reason, the professional traders don’t use the smaller time frame in their IB broker platform.

The lower timeframe is also messy: the more you try to divide your pies, the harder it will get to keep your plate tidy. If you trade on a lower timeframe, the chart can get really messy. There will be many bars, patterns, candlesticks and what not.  You do not want your trading chart to get messy.

Chart pattern trading is considered to be none of the most profitable trading strategies in the world. Most of the time the large market movements are seen in the market after the chart pattern formations. So if you are relatively in forex trading don’t look for chart pattern in the smaller time frame since they are not at all accurate. The expert forex traders always look for the most reliable chart pattern in their IB broker platform by using the higher time frame. Once they spot the reliable chart pattern in the market they wait for patience for the breakout and execute their trade in the market by using the price action candlestick pattern.

Managing the risk

Trading the financial instrument is considered to be one of the most complex tasks in the world. If you truly want to become a profitable trader in the forex market then make sure that you trade the live assets by following proper risk management factors. Most if the novice traders in the forex market fail to achieve success in the forex market since they don’t follow proper risk management factors. Being a novice trader it’s very obvious that you will have consecutive losing orders in the market but you need to keep your losing amount small.

Conclusion: Always try to trade on a higher timeframe. Be patient and observe the market. Focus on quality than quantity on your Forex trades. It’s true that the early part of your trading career will be extremely difficult but you need to overcome all the challenges with strong determinations.

[Raymond V. Boyd]

Trader use higher time frame to analysis the price action. Short time cannot provide accurate price pattern or else. Pro trader use higher time which has high probability of success. Now I am trading with CapitalsTrade. I use h1 and h4 for trading strategy. My broker are providing me all the necessary facility like low tight spreads starting from 1 pip, high leverage 1:500, low transaction cost and many more.

[Joe Hoover]

When the traders enter the forex market, they become very cautious regarding the frequent changes in the market signal. It is factual that the price movements in the Forex market are always a great concern for its all stakeholders. Various trading strategies including the price action trading of forex are developed in this market to response correctly to the changes in the market. While a trader is using price action strategy, it is imperative that he has to read the market and place his trading orders based on higher time frame.

[Resolve]

I am doing my Forex Trading with the International Forex Broker FXOpen Markets and they have Fast Deposits and Withdrawals 🙂

[Resolve]

I have been doing my Forex Trading with FXOpen Markets from the last 10 Years and they are very Reliable and Trustable International Forex Brokers 🙂

[Resolve]

I have been doing my Forex Trading from the last 10 Years with FXOpen Markets and they have very secure and fast Trading MT4 Terminal 🙂