When traders get into the Forex market, the first problem they face is to determine whether they will choose a short timeframe in Forex or long timeframe. It might be appealing to choose the shorter timeframe because when you look at that, you see the market is moving beautifully. Not a second goes by when the market does not move. You also want that, right? So what could be wiser to choose a shorter timeframe that gives more movement?
Why should you not choose shorter timeframe?
Sounds logical. But it’s not the answer. When you are choosing the short timeframe, you are ignoring the most obvious condition of the trading market. How the market moves in a whole. When you look closely at the market from a short time span, it will only give you a partial understanding of the market. You will not get the idea of the market as a whole.
Benefits of longer timeframe
Shows complete market condition: Longer timeframes will allow you to observe the real condition of the market as a whole. Your trading experience will be more fruitful when you are taking into account of all the phenomena of the market. Even the most professional price action traders in the financial market always execute their trades in the market in the higher time frame since they know by trading the higher time frame they will be able to pin out the best trades in the market.
Past and present comparison: Not only you can observe the market from all angles, you can also compare the conditions of the market with a past scenario. Most of the traders like the longer timeframe because of this advantage. If you are using short, you do not get the idea what have happened earlier in the market. Trading a longer timeframe will allow you to observe if the market had any downfall in the trade. So when you are currency trading online make sure that you consider the market sentiment very precisely.
Less messy: If you have noticed or not, the shorter timeframe is also messy. There is a lot of up down of lines running all over your screen. You may think the market is moving more. But it is not the actual scene. In a longer timeframe, it will show you a clearer, less messy and a vivid display of the information on your same screen. Choose the longer timeframe to have a tidy execution in the market. And always remember one thing that don’t mess up your trading chart by using too many indicators rather try to trade the price action signal in the market in a clean chart.
Summary: Always try to practice with a longer timeframe on your screen unless you are used to with your shorter time frame and have made money successfully. Most of the successful traders’ trade with a longer timeframe. Longer timeframe not only gives you a whole idea about the market but is also clear to understand what is happening around the price level of the currency.