Forex Analysis part 1
The use of various time frames will help us to determine two things:
Long-term global trends are happening
Great time to execute Buy / Sell
Both of the above is a crucial part in trading. Imagine if you do not know the long-term trend that is happening. And since the 1 hour or 15 minute chart shows you the trend is pointing to the downtrend and then we open the sell position. Meanwhile, while the trend in the long term shows prices are rising. Well what will happen?
In the short term (hours ahead) if your technical analysis is valid enough your position will profit but not if you hold your position for days eg. Due to the daily trend of the price indicates the direction of rising then your profit position will slowly change to minus. Unfortunately again if you do not use Stop Loss then most likely Margin Call will occur. Up here the major hassles will come soon including the social effects that arise because you experience loss. Well here is the importance We use multiple time frames in the trade. Most traders use larger time frames to determine long-term trends like 4h (4 hours) or D1 (daily). As for determining the position taking then you need a shorter time frame can be 15M (15 minutes) or also H1 (1 hour). Well which case is used, it all depends on how your trading. Everyone has different trading cycles. Some open positions and after days can even up to a new month closed position (this is called swing trader) or there is also only in a matter of hours his position has been opened and closed many times. Let's learn one by one.
Swing Trader, Day Trader and Scalper
As has been explained above that everyone has their own trading cycle. Some people because of time limitations can not see the price at any time (like I am ...) so choose to be more passive like a Warren Buffet policy. There are also some people who have enough time and access to enable them to monitor price movements and try to take profit as much as possible in the world of forex. Thus he tried his trading by opening a daily position.
Swing Traders are those who decide to trade in the first way. Swing traders tend to hold their positions for days to months. Some even hold their position for up to a year! Traders with patterns like this tend to wait until the price is in the best position and then shoot by opening a lot of lots and put a big profit target. Usually they open positions only in very extreme conditions where the price is very high or the price has been very low according to the history of the movement in recent weeks. Due to this condition is not so often then once they get the chance then the target is also very large pursued and also balanced with sufficient funds to withstand price movements because usually they determine the Stop Loss point is also quite large. That's why Swingers often start trading with pretty good money around $ 3000 for a mini trading.
Long-term global trends are happening
Great time to execute Buy / Sell
Both of the above is a crucial part in trading. Imagine if you do not know the long-term trend that is happening. And since the 1 hour or 15 minute chart shows you the trend is pointing to the downtrend and then we open the sell position. Meanwhile, while the trend in the long term shows prices are rising. Well what will happen?
In the short term (hours ahead) if your technical analysis is valid enough your position will profit but not if you hold your position for days eg. Due to the daily trend of the price indicates the direction of rising then your profit position will slowly change to minus. Unfortunately again if you do not use Stop Loss then most likely Margin Call will occur. Up here the major hassles will come soon including the social effects that arise because you experience loss. Well here is the importance We use multiple time frames in the trade. Most traders use larger time frames to determine long-term trends like 4h (4 hours) or D1 (daily). As for determining the position taking then you need a shorter time frame can be 15M (15 minutes) or also H1 (1 hour). Well which case is used, it all depends on how your trading. Everyone has different trading cycles. Some open positions and after days can even up to a new month closed position (this is called swing trader) or there is also only in a matter of hours his position has been opened and closed many times. Let's learn one by one.
Swing Trader, Day Trader and Scalper
As has been explained above that everyone has their own trading cycle. Some people because of time limitations can not see the price at any time (like I am ...) so choose to be more passive like a Warren Buffet policy. There are also some people who have enough time and access to enable them to monitor price movements and try to take profit as much as possible in the world of forex. Thus he tried his trading by opening a daily position.
Swing Traders are those who decide to trade in the first way. Swing traders tend to hold their positions for days to months. Some even hold their position for up to a year! Traders with patterns like this tend to wait until the price is in the best position and then shoot by opening a lot of lots and put a big profit target. Usually they open positions only in very extreme conditions where the price is very high or the price has been very low according to the history of the movement in recent weeks. Due to this condition is not so often then once they get the chance then the target is also very large pursued and also balanced with sufficient funds to withstand price movements because usually they determine the Stop Loss point is also quite large. That's why Swingers often start trading with pretty good money around $ 3000 for a mini trading.
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