As we already mentioned on the previous Tip of Pips, now we will discuss about the appropriate candlestick to the time frame of forex. Is it necessary to learn? It ' s absolutely. Why? Because there are so many time frames. Which are better than others? All of them are mutual strengthen. In all of the forex broker, there are graphs of time frames, i. e. monthly, weekly, daily, 4 hourly, hourly, 30 minutes, 15 minutes, 5 minutes and a minute. In the previous we told you about the candle combination with high reliability. But, in which time frame will works? All of the time frame has meanings. And all the experts tell that the type of trading will determine the time frame they choose. For instant, the scalpers will use short time frames, because the fluctuation can be seen clearly and also they will play on the peak hours which are volatile.
Psychologically, at the candlestick point of view, the time frame among 1 minute up to 1 hour assumed to be so short to analyze the fluctuation of the market. The scheme of this candlestick cannot represent of the activities of trading during that time frame. At the other side, 4 hourly and so on are assumed can represent the candlestick. The longer time frame is the more reliable. For example: in according to 4 hourly candlestick will be bullish, and you may trade for next 4 hour by buying ( long ). You just set the target and let the point reach the target you have set. You may hope 30 - 50 pips from this transaction.
You should look at daily time frame as well. If combinations that are according to this are bearish, you have to be aware, because daily time frame is stronger than 4 hourly time frame. If you are doubtful you better keep waiting until there is a signal for bearish in 4 hourly time frame, then you trade by selling ( short ). But sometimes, at the end of four hourly time frame finished, there is an opposition in a lower timeframe. For example: in a 4 hourly time frame, it has to be bearish, but at the end of the time, in 15 minutes timeframe, there is bullish. This will make confused. Actually, the trend is going to be bearish, but it forms a tail first. What we tell you is in an ordinary situation. If you think that the candlestick combinations are not a high reliable one, then another indicators should apply such as parabolic SAR, moving average, MACD, Bollinger bands, Relative Strength Index ( RSI ), Oscillators, etc. Please find that indicators of forex in our website to learn.
By experiencing in time frame of forex, we can easily determine the direction of trend and we can make a win.
Happy Trading!
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