A lot of people who start trading currency automatically rule out the idea of trading the daily price charts. This is because they prefer the quickly pace of the short term charts such as the 1 minute and 5 minute charts, and prefer to try and make quick profits instead. However the reality is that you can make a lot of money trading this particular time frame.
If you end up looking at the fast paced 1 minute or 5 hour chart, the price flies in the place, seemingly at random. Over the daily chart, however, it can look as if it’s hardly ever moving most of the time, which is why a person really need to check this chart at the end of each trading session, when the latest bar / wax light has closed.
The only method I have found profitable on these short time frames is to trade early morning breakouts. This is the place you wait for a narrow overnight trading range on a single of the major pairs, and trade in the same guidance as any subsequent large, using pivot points for additional guidance. Although I have to say that even this procedure is not always that trusted.
You just need to wait for the right trading circumstances to be met on one of the major currency pairs, whether you are swing trading and looking for a price reversal, or whether you are waiting for a 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 can be that you only need to be for your computer for around 10 units a day (at the end in the trading session). You can arranged your target price and stop loss and let the operate unfold in it’s own time.
Don’t get me wrong, it is possible to do very well fx trading the short term charts. Even so it is one of the hardest ways to make money from currency trading because if you enjoy the markets every day, you will know that they move around very quickly and frequently in a very random fashion. There is generally too much noise to produce money consistently, regardless of that system you use.
So the point is usually that the daily charts might be a lot more profitable than the not as long time frames. They are a reduced amount of stressful and the price tactics are far more predictable since many of the technical indicators really are a lot more reliable. Therefore I would recommend you try and trade these kind of charts if you are still battling to make money trading the intraday price charts.
That is why it is much better to apply the longer term charts, and the daily chart in particular is reasonably a good choice because so many additional traders trade this time frame as well. This means that technical analysis works really well because everyone seems to be watching the same price levels as well as the same indicators. It should be noticed that these indicators work better on the daily chart as opposed to they do on the 5 minute chart, for example.
This is a way more relaxed way of trading you can make just as much money. For instance when day trading you will probably get making profits in the region of 5-10 items 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 from day charts.