Most people who start trading foreign currency trading automatically rule out the idea of trading the daily price charts. This is because they prefer the easily pace of the short term charts such as the 1 minute and 5 minute charts, and prefer to try and make instant profits instead. However the truth is that you can make a lot of money buying this particular time frame.
The only method I’ve found profitable on these not as long time frames is to trade early morning breakouts. This is where you wait for a slender overnight trading range using one of the major pairs, and trade in the same direction as any subsequent breakout, using pivot points designed for additional guidance. Although I have to say that even this technique is not always that reliable.
This is a much more relaxed way of trading but you can make just as much money. By way of example when day trading you will probably get making profits in the region of 5-10 ideas per trade, several times every day (if you are lucky). However, you can make just as much profit, or even more profit, by trading one single position on the end in day charts.
That is why it is much better to use the longer term charts, and also the daily chart in particular is quite a good choice because so many other traders trade this time frame as well. This means that technical test works really well because everyone is watching the same price levels and also the same indicators. It should be noticed that these indicators work better on the daily chart than they do on the 5 minute chart, for example.
While you are looking at the fast paced 1 minute or 5 hour chart, the price flies above the place, seemingly at random. Over the daily chart, however, it may possibly look as if it’s hardly ever moving most of the time, which is why an individual really need to check this chart afre the wedding of each trading session, as soon as latest bar / candle has closed.
Don’t get me wrong, it is possible to do very well trading the short term charts. Nevertheless it is one of the hardest ways to make money from currency trading because if you enjoy the markets every day, on the liner that they move around very quickly and sometimes in a very random fashion. There is generally too much noise to make money consistently, regardless of which inturn system you use.
So the point is that the daily charts might be a lot more profitable than the shorter time frames. They are a lot less stressful and the price tactics are far more predictable simply because many of the technical indicators 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 any intraday price charts.
You just will need to wait for the right trading circumstances to be met on one in the major currency pairs, whether you are swing trading and looking for a price reversal, and also whether you are waiting for a good possible breakout, for example. Should you use certain indicators to help you, consequently it can be quite easy to find profiting trades, and the beauty is normally that you only need to be your computer for around 10 units a day (at the end in the trading session). You can arranged your target price and loss and let the trade unfold in it’s very own time.