WEBVTT

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So what time frame should I use? In the first course,

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this has been the most popular question.

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My answer is always the same:

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it depends.

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If you go to a financial advisor and say: "hey, I want to buy some government bonds".

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The first thing that the financial advisor will ask is: "would you like to invest in short term or long

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term bonds?".

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So if you ask me "what timeframe should I use?", I will reply "it depends on your time horizon".

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If you want to plan long term investments, holding your position for weeks or even months, then weekly

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and daily charts are good for you.

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In any case I always suggest to analyze the daily chart even if you're planning to trade on shorter

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timeframes. Daily charts can be used to keep an eye on the market's overall direction.

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They say that trend is your friend,

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so seeing the bigger picture on the daily chart can help you to trade on lower timeframes in the same

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direction of the prevailing trend.

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Unfortunately, I have seen many traders focusing on short term price action, forgetting about the daily

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chart to analyze the main direction of the price.

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Don't do this mistake, every morning take 10 minutes to check your daily charts and see if something

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has changed.

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Which time frame do I use?

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I mainly use the 1-hour chart and I explain you why,

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so you can see that the reason is strictly personal.

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People who know me, know that I decided to become a forex trader not because I want to be rich but because

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I want to have time for myself.

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So I want to be able to work 4-5 hours per week without checking the charts every single hour.

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For this reason I never trade on low timeframes like 15 or 30 minutes. At the same time,

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I don't want to get bored, holding my positions for weeks or months.

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That's why I tend to avoid daily and weekly charts.

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So now you know why

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I mainly use the hourly chart and sometimes I also use the 4-hour chart.

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So, once again, what time frame should you use?

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It depends on you. If you are very busy and don't have time to trade,

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you can focus on the daily chart or the 4-hour chart.

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If you have more time to dedicate to Forex trading, you can also consider to use the hourly chart.

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In any case, I don't recommend timeframes lower than 15 minutes because it will expose you to daily trading

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noise and random movements that will give you a lot of false signals.