Utilizing different forex time frames, for both the novice and advanced forex traders, is a very important concept.
Both the higher and the lower timeframes are important.
We often find the momentum on the higher timeframes, and we use the lower timeframes for entries.
As mentioned, the higher timeframe gives a picture of the overall trend of that specific day and or week.
But also the lower Forex time frames on the other hand are also very important to have the right risk reward and form of entries within that specific trading day.
The main Forex time frames.
Forex timeframes are often classified as long medium and short term timeframes.
So these three timeframes are crucial to understand, the higher timeframes such as the weekly daily 4h to identify the overal trend, and the lower forex time frames to identify potential within this price range trade setup.
See below a good example of a higher timeframe 4h supply zone & a lower timeframe entry m30.
Forex time frames
Use a timeframe that matches your strategy!
Are you a swing trader?
Then you will use the higher timeframes more often and you will switch between a weekly down to a 4h base for entries.
If you are a day trader or scalper?
You will often use the lower timeframes, of course you respect the higher timeframe momentum and trends, but all your focus is on short moves that is what a scalper / day trader does.
You can think of the hour m30 m15 and some traders even use the m5 to m1 for their perfect entry timeframe.
What Forex timeframe should be traded?
As mentioned above in the previous topic, it is important to understand what kind of trader you are.
Are you a Swing trader? Or maby an intra day trader?
A day trader or maby a scalper?
Of course you can best answer this question for yourself and you can choose in which timeframes you will use.
I myself mainly scalp day trade and use a combination of a number of important timeframes.
Like the weekly daily 4h for everywhere direction or that specific day and or week, in terms of highs lows we see that the big institutions are really anticipating this and this the bias for that week or day.
And the lower timeframe within these highs lows of higher timeframe applicable to lower timeframes supply & demand zones.
You can see below a nice example from a higher timeframe low structure change in buyers direction into a few great supply zones on poundyen gbpjy.
Forex time frames
Finally click here to see my blog about how to trade gbpjpy.
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Forex time frames