In today forex faq, I shall be sharing with you a question from one of our fellow traders.
Below is the question:
Do you use forex indicators and what time frame do you use?
As a technical trader myself, I will always add some indicators into my trading system. With the help of forex indicators, you will be able to interpret the market more effectively and accurately.
However you need to understand that different indicators suit different trading system. Therefore you need to understand the trading system you are using so that you can know which indicators to add.
For me, I will switch my indicators depending on the trading strategy that I am going to trade. Therefore there is no fix indicators that I will always use.
In fact, I have written quite a number of posts on forex indicators as well as when to use which indicators. You can read those posts here.
As for the time frame that I use, I usually use the 15 minutes and hourly for trading. But I will use the weekly, daily, 4 hourly and hourly chart to do a proper technical analysis on the currency pairs that I am interested in so that I can have a good picture of the overall market.
I will use the hourly and 15 minutes chart to scout for good trading opportunity and then moves down to the 5 minutes to find a good entry. Similarly, the time frames to use also depends on your trading system.
If you are a position trader who will allow your position to run for days or even weeks, you can use those charts from the higher time frame. However if you are a scalper who enter and exit your trading position within minutes, you will use those 5 minutes or 1 minutes chart. If you are a day trader like me, you will use the 15 minutes and 1 hour chart.
Therefore in order for you to know which time frames to use and what indicators to use, you need to understand what kind of trader you want to become and what trading strategy you are going to use.