3 Basic Forex Time Frames in Trading

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Basic Forex Time Frames in Trading
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Index

• 1. Forex Time Frame
• 2. 3 Basic Forex Time Frames in Trading
• 1. Long-Term Time Frame
• 2. Short-Term Time Frame
• 3. Intraday Time Frame

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Forex Time Frame

• Forex time frame is the time within opening a
  trade position and closing it.
• Just like our personalities are different, the
  pace at which a person trades in the market is
  also different.
• Some people prefer to do things slowly and
  steadily, while some others enjoy the excitement
  of fast-paced trading activity.

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• Nevertheless, it is wise to consider the pros and
  cons of those time frames before choosing any one
  of them as the best Forex time frame for you to
  trade Forex.

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1. Long-Term Time Frame

• This type of time frames is common among
  long-term traders.
• A long-term trader refers to charts that show
  information on weekly or daily trade activities
  in the market.
• Trades of this category last for as long as
  weeks, months, or years.
• Beginner traders are suggested to start with the
  long-term time frames.

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• The bright side of trading a long-term time frame
  is that it allows the trades enough time to think
  each trade through before taking any actions.
• It is cost effective too.
• A long time frame on the "not bright side", that
  it is a capital intensive, it involves large
  swings, and there might be many losses.

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2. Short-Term Time Frame

• This time frame is the best for traders since it
  opens and closes in a short time frame but not as
  short as 5 minutes.
• A typical short-term time frame lasts for hours
  it might even extend to weeks sometimes.

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• The advantage of short-term time frame is that it
  offers more trading opportunities to traders, and
  as a result offers many options to pick from.
• On the downside, a short-term trade costs higher
  the transaction fee as there are more spreads to
  pay.
• There is also the factor of overnight risk.

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3. Intraday Time Frame

• In this type of time frame, trades are held using
  minute charts.
• Trading time start and closes at specific times,
  unlike in other time frames where the trade can
  last for more than a day.
• Every trade can last for 1 minute, 5 minute and
  10 minutes or so.

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• This frame offers the plenty of advantage of
  trading opportunities to the traders and no such
  thing as overnight risk.
• Its drawbacks include higher transaction costs,
  limited time to think things through, and limited
  profits.

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Thank You