Almost all people who start trading fx automatically rule out the idea of exchanging the daily price charts. This is because they prefer the fast pace of the short term chart such as the 1 minute and 5 minute charts, and prefer to try and make speedy profits instead. However the truth is that you can make a lot of money buying this particular time frame.
This is a much more relaxed way of trading people can make just as much money. For instance when day trading you will probably be making profits in the region of 5-10 items per trade, several times daily (if you are lucky). Nevertheless, you can make just as much profit, if not more profit, by trading a single position on the end from day charts.
That is why it is much better to use the longer term charts, and also the daily chart in particular is reasonably a good choice because so many other traders trade this time framework as well. This means that technical analysis works really well because everyone is watching the same price levels as well as the same indicators. It should be remarked that these indicators work improved on the daily chart when compared to they do on the 5 minute chart, for example.
So the point is that the daily charts can be a lot more profitable than the shorter time frames. They are not so stressful and the price techniques are far more predictable because many of the technical indicators really are a lot more reliable. Therefore I would recommend you try and trade a lot of these charts if you are still battling to make money trading all the intraday price charts.
Don’t get me wrong, it is possible to do very well fx trading the short term charts. Nonetheless is one of the hardest ways to earn money from currency trading because if you keep an eye on the markets every day, you will know that they move around very quickly and frequently in a very random fashion. There is generally too much noise to create money consistently, regardless of that system you use.
If you end up looking at the fast paced 1 minute or 5 hour chart, the price flies over the place, seemingly at random. Over the daily chart, however, it may possibly look as if it’s hardly ever moving most of the time, which is why an individual really need to check this chart afterwards of each trading session, when latest bar / wax light has closed.
You just will need to wait for the right trading circumstances to be met on one of the major currency pairs, if you are swing trading and looking for a price reversal, or simply whether you are waiting for a good possible breakout, for example. Should you use certain indicators to help you, after that it can be quite easy to find receiving trades, and the beauty can be that you only need to be at your computer for around 10 units a day (at the end of the trading session). You can set your target price preventing loss and let the operate unfold in it’s very own time.
The only method I have found profitable on these shorter time frames is to trade early morning breakouts. This is when you wait for a slender overnight trading range on a single of the major pairs, and trade in the same direction as any subsequent breakout, using pivot points to get additional guidance. Although This wasn’t say that even this method is not always that trusted.