The first step was to pick a single time frame. By this time, I had been trading Forex for about 6 months so I knew my way around the markets. I quickly learned that smaller time frame charts are hard to analyse because they are erratic and prone to random movements.
I decided to jump up to the 4 hour charts and I haven’t looked back since. I strongly believe that every trader should trade on hourly charts or above.
The point is not so much what timeframe I traded it’s the fact that I picked a single time frame, and stuck to it. To me it was all about simplifying trading so I could more efficiently learn to trade.
So looking at a single timeframe had several benefits;
- Allowed me to concentrate on learning one time frame, therefore removing a lot of the confusion you can have when juggling multiple time frames.
- Gave me less charts to look at and allowed me to concentrate more on analysing a single currency pair.
- Stopped me from over analysing my pair. Looking at too many time frames gave me conflicting signals.
Overall having a single time frame keeps it simple.
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