In today forex faq, we have a question regarding the time frame to use from a new trader.
Below is the question:
Which time frame is best for new comer in forex? When I look from 30M to Daily get confused. Please guide.
There is no such thing as the best time frame, it depends on your trading style as well as strategy when determining the time frame to use.
However I will suggest you to stay away from lower time frame like the 1 min and 5 min if you are still new. This is because these 2 time frames produces a lot of noises in the chart which can be very misleading to new traders.
If you have to use the lower time frame to trade, I will suggest you to go with the 15 minutes chart as it has lesser noise and therefore easier to trade with.
Besides the 15 minutes, I personally is using the hourly as well as the 4 hourly chart in my trading as well. If you are new in trading, I will suggest you to trade with the hourly chart and the 15 minutes chart.
You should use the hourly chart to look for trading opportunity and then move down to the 15 minutes chart to look for the best entry.
To find out more about the best entry, you can read my post on forex entry strategy here.
I like to use the hourly chart to look for trading opportunity because it gives me a longer time to plan my trade and it produces lesser noise as compared to the lower time frame. You may think that why I dun use the 4 hourly chart instead since it can give me more time to plan my trade.
The 4 hourly chart is too slow and it is only recommended for those traders that do not have the time to look at their chart. Since one candle is 4 hour, i day will only produce 6 candles and therefore it is meant for those who are position traders.
For day traders like me, we shall go with the hourly chart as it gives us the best balance between trading opportunity and noise reduction.
The above are all based on my personal opinion and experience. If you guys have anything to share, do feel free to give your comments below as it will be very useful for other traders here.