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Trade
Timeframe in Forex
Timeframe (TF) – the time interval that the trader for the graphical display of the price chart. Switching TF does not change the market situation, but merely presents it to us in a different form. All movements of market prices that have occurred over the chosen terminal in the time interval will be displayed on the same vertical line, for example, in the form of candles.
When choosing TF = M15, one candle on the price chart in the terminal will show us the full range of market prices during these 15 minutes. If you increase the timeframe, for example H1, each candle on the chart will correspond to one hour.
Is changing the graphics, changing the scale. In fact, 4 M15 candles arranged in a row one by one, when switching to TF = H1 just turn into one candle.
Timeframe MetaTrader 4
Designation is very simple. The names of all TF start-time:
1. M – minutes,
2. H – hours,
3. D – days
4. W – weeks
5. MN – a month.
A numeric value tells us the number of time units. For example, if you look on M15, it means that one candle on the chart is 15 minutes. N4 – each candle is 4 hours and so on.
The Timeframe for short-term trading:
• M1 is most often used by supporters Pipsing
• M5 M15 – prefer scalpers and speculators, trading within the day
• M30 – intraday trading, as a rule, transactions will not be executed longer than a day, the
Timeframe for medium-term trade:
• H1 – medium-term trade usually trades in scale from days to weeks
• N4 – position can be in the market for more than a week
Timeframe for long term trading:
• D1 is perhaps the most popular among TF fans long term trading
• W1 and MN is often used by traders to overall assessment of the situation on the market in the long term.
Which timeframe to use?
It all depends on the preferences of the trader that the trading method he decided to apply in their work. If the speculator decided to start scalping, it is stupid to do it on TF = D1, for example. Similarly, long-term position is absolutely embarrassing to open at TF = M1.
The way to trade, which is a stick man, he dictates the time scale which is most convenient to use. As a rule, the trading system even created recommendations for their application in certain time frames. This means that the vehicle created for H1 and H4 will not fit fan of short term trading.
The amount of TF in MetaTrader 4 is limited, this article lists them all. A new version of the trading platform (MetaTrader 5), which still does not get the recognition among the traders who already has some other TF.
Use multiple TF in one strategy
There are trading strategies that traders use several different timeframes. Above the picture shows charts of the same currency pair GBP/JPY, but different TF H1 and M15. This breakdown is done for what would be on larger scale (H1) to see the direction of the global trend but on a smaller TF to look for the best moments to open positions.
For example, if a speculator decides to work only in the direction of the trend, then he can look first at the H1 timeframe, to note the direction of the market and then switch to M5 or M15 and find profitable entry points. One of the most popular systems using this principle, the vehicle is a "Four screen". This approach to finding entry points is used as scalpers, prefer not to resist the trend.
To find an indicator that will move the price curves of the same trading instrument on one chart. This allows you to immediately assess the situation on the trader selected quantity of TF without switching on the terminal Windows.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 246
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