A lot of people who start trading currency automatically rule out the idea of currency trading the daily price stock chart. This is because they prefer the easily pace of the short term stock chart such as the 1 minute and 5 minute charts, and prefer to try and make quick profits instead. However the fact is that you can make a lot of money trading this particular time frame.
When you are looking at the fast paced 1 minute or 5 hour chart, the price flies in the place, seemingly at random. In the daily chart, however, it may look as if it’s hardly moving most of the time, which is why you only really need to check this chart right at the end of each trading session, as soon as latest bar / candle has closed.
This is a lot more relaxed way of trading but you can make just as much money. Such as when day trading you will probably come to be making profits in the region of 5-10 ideas per trade, several times every day (if you are lucky). Nevertheless, you can make just as much profit, if not more profit, by trading one single position on the end from day charts.
You just ought to wait for the right trading circumstances to be met on one for the major currency pairs, if you are swing trading and looking for a price reversal, and also whether you are waiting for your possible breakout, for example. If you use certain indicators to help you, consequently it can be quite easy to find winning trades, and the beauty is normally that you only need to be at your computer for around 10 minutes a day (at the end of the trading session). You can establish your target price and prevent loss and let the operate unfold in it’s private time.
Don’t get myself wrong, it is possible to do very well currency trading the short term charts. Even so it is one of the hardest ways to make money from currency trading because if you keep an eye on the markets every day, aboard that they move around very quickly and quite often in a very random fashion. There exists generally too much noise to create money consistently, regardless of which system you use.
That is why it is much better to employ the longer term charts, as well as the daily chart in particular is quite a good choice because so many several other traders trade this time frame as well. This means that technical analysis works really well because so many people are watching the same price levels plus the same indicators. It should be remarked that these indicators work a lot better on the daily chart than they do on the 5 minute chart, for example.
So the point is usually that the daily charts might be a lot more profitable than the short time frames. They are not so stressful and the price goes are far more predictable simply because many of the technical indicators undoubtedly are a lot more reliable. Therefore Chance to find the you try and trade these kind of charts if you are still struggling to make money trading that intraday price charts.
The only method I’ve found profitable on these shortest time frames is to operate early morning breakouts. This is when you wait for a narrow overnight trading range one of the major pairs, and trade in the same direction as any subsequent breakout, using pivot points designed for additional guidance. Although I’ve got to say that even this method is not always that dependable.