Why Trade the 4 Hour (4hr) Time Frame?
| Coming from stocks i would use different time frames 15m 60m and a daily, but i notice you and many FX traders use a 4 hour chart, now my question to you is, what is the significances of the 4 hour chart? is this the best time frame for the FX? Thanks you so much for your help My trading foundation also comes from shorter time frames. Trading the 3m & 5m time frames in stocks and 1m & 3m time frames in futures. Trading those instruments the shorter times are great. When it comes to trading Forex the clear advantage is on higher time frames. The 4 hour time frame is excellent in the Forex markets because it gives more precise entries and exits than the daily time frame. However because the Forex markets are 24 hour markets if you are trading the 4 hour time frame you need to check the charts every 4 hours when close to a possible system signal. This is tough to do if you want to sleep! This is why we only trade one pair (GBP/JPY) on the 4 hour time frame so that it is manageable for us. The daily frame's advantage and is ideal because only first of all it is a larger time frame which is an edge in Forex trading as well as there can only be one possible system signal per day which makes it very easy to manage and trade. After all we all became trades to make money and have more freedom, not to be slaves to the screen. Regards, Jordan |
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