Most Forex traders have no idea why Forex prices are moving, making major mistakes in trading time frames. In this article, we will look at three popular time frames and see what is the best time to trade your trading strategy.
In the Forex markets, all the basic news of supply and demand will be shown in the price action, followed by the views of all traders, so let me divide the price action into 3 terms.
Long-term trends
The large currency trends, which last from a few weeks to many months, reflect the economic and political health of the country’s currency. These big foundations are slowly changing from expansion to contraction, which is why these trends have been going on for so long.
Intermediate term trends
Whether large fundamentals prevail in the long run, traders’ emotions can push prices up or down in the short run; they can be seen as intermediate trends, large trends that can be either mainstream or vice versa. These trends usually last from a few days to a week.
Short-term trend
This is an overnight transaction չէ it really is not a trend, it is just a random price action. In a day, prices can go anywhere, they go.
What is the best time to trade?
From the above, it is clear that long-term trading can give you the most profit with the least amount of work. All you have to do is follow the trend, keep it up, but following the long-term trend really only works for the patient, disciplined salesperson.
Mid-term trend trading can be very lucrative և requires less patience և discipline than long-term trend trading. You can earn money in two periods, և what you choose will simply depend on your personality.
I have not yet mentioned day trading, it’s the most popular trading term, but it does not give you a real chance of success. There is a big industry that sells useless robots and other so-called low-risk trading scalping strategies, but they do not make money and the day traders lose.
If you want to win in Forex Trading, do not make the mistake that most people make և trade short-term. Do more business in the long run, you will have opportunities on your own, you will be able to have a big second income.