All the trading decisions you make will have to be done much faster than if you trading the 1 hour chart for example. In addition to this, you will be making and losing money lots of times throughout the day, this in itself can be quite difficult to deal with, to be up £30 in one hour is a great feeling but then to be down £50 the following hour is horrible and frustrating.

The level of concentration along with the mental discipline required to deal with making and losing money at such a fast pace is too great for most people me included, I need things to be slower so I can have enough time to formulate all my analysis and plan my trades in advance, due to this I stick with placing trades using the daily chart and the 1 hour chart.

The daily chart is perfect for people who would like to trade when they are not free during the day if you have a job for example, most of the strategies I layout on this site can all be used on the daily chart. If there is one downside to trading the daily chart it would be that it requires more money to be able to trade effectively. A trader who does not have a job will not likely have much money to begin trading with, so if you are one of these people I suggest you shy away from placing trades based upon the daily chart.

The overall risk on each trade will be too great in terms of how much money you have in your account, if you put £ Compare this with trading off the 1 hour chart which, with the same £ If you do happen to be lucky enough to be free during the day then I suggest you trade using the 1 hour chart.

The 1 hour chart offers flexibility in terms of what you want to do, the market moves slow enough for you to be able to analyses the chart for trading opportunities and also generates enough trades so you have lots of decent chances of making money. Also, the size of the stop-loss will be much lower than if you were trading the daily chart. If you like, you could use the daily chart and the 1 hour chart together, that way your placing longer term trades which you can make more money with and short-term trades which will make up for any losses you might take.

On the daily chart above you can see my first trade was taken just before the market started moving higher, unfortunately this was the only pin bar signal that appeared in the market during this up move on the daily chart. So after I had this trade placed I switched to the 4 hour chart to see if I could find any more pins to trade. I usually use the 1 hour chart for this but MT4 was messing me about and showing a big gap in the market so I had to use the 4 hour to see the pins.

The three ticks on the chart show the additional trades I took after trading the pin on the daily chart. All of these trades were successful minus one which I ended up losing money on. The first two trades I closed around the same time I exited the daily pin trade, however the other one I continued to hold until the market hit the In forex trading, scalping can come in handy. Scalping tries to profit from short-term price changes, so if there is uncertainty, you can exit the market with a minor loss and return later to look for another opportunity.

Another advantage of scalping is the outcome. Scalping trades, in most circumstances, achieve profit levels within minutes or hours.

We can see a trade setup when the price is above these MA lines. Similarly, if the charge moves below those lines and stabilizes, we can switch our viewpoint from bullish to bearish. We are able to forget about what is going on in the higher timeframe in each circumstance. Keep in mind that a rising moving average crossover indicates a momentum in the trend.

If the fifty EMA crosses above the hundred EMA, we go long. Similarly, if the 50 EMA goes below the hundred EMA, it indicates a sell. The trade setup comes when the EMA 50 moves above the EMA with a bullish candle close above both Moving averages. Yes, if price reverses immediately and goes onto form a long-term trend that would be great.

However, if the trend continues you can get taken out of the market again and again. If you wait for the trend to form and a pullback before a continuation, I find this is a better-timed entry. That being said, reversal trading in a range bound market when there is less volatility can be a good time to pick of market tops and bottoms. This 1-hour forex strategy is using a combination of technical indicators to identify the trend direction and then enter on a pullback.

It also takes into account price action analysis which I like to use to confirm all of my trades. I think this is often overlooked especially by beginners. Price is above both moving averages and the CCI is in the oversold area showing a pullback. The entry is confirmed with bullish candlestick patterns including an engulfing bar and hammer candle. We could have placed the stop loss just below the 50 SMA which would have been around 15 pips.

The position could have been exited when price closed back on the other side of the 50 SMA which was over pips. This trade had a very good risk to reward ratio. The 50 SMA could even have been used as a trailing stop point. There is a death cross with the 50 SMA crossing below the SMA. Price is below both moving averages and the CCI is in an overbought area above This was a chance to enter this trend on a pullback. Stop loss around the 50 SMA level would have been 30 pips which is relatively tight when you consider this trade went on to make around pips if we exited when price closed back above the 50 SMA.

The period moving average could have been used as a trailing stop. I have marked a more aggressive earlier entry on the chart, which would have been taking the sell trade as soon as price broke the support level. It works this time but does not always which is why I prefer to wait for a pullback. This 1-hour forex strategy can be used alongside the 1-hour trend strategy, choosing the most suitable option depending on the market conditions.

When trading reversals, we are looking for a range bound market so we can enter buy and sell trades in the overbought and oversold areas. We could have taken a few good buy signals when price fell below the lower band and the CCI was also oversold. There are also some bullish spinning top candlestick patterns to confirm entry.

The best time to trade Forex is when there is either movement upward or downward. But when the market is still and not moving at all, there is very little chance for you to make money. Before we dig deeper into the best times to trade Forex, let us break down the hour trading day so that you can visualize how it looks.

In Forex Market, there are four major trading sessions in Forex. For the above four major forex trading sessions, there a historically three peak forex trading sessions. As long as you can focus on one of these three peak trading sessions, you are good to go.

There is no need for you to trade in Forex 24 hours a day. These three peek sessions are called European, North American, and Asian trading sessions, based on the names of continents. Alternatively, people also call them London, New York, and Tokyo sessions, based on the names of cities. Following the international dateline, a new calendar day starts. In New Zealand, the Forex market opens on Monday morning, at which time most of the world is enjoying Sunday.

The market is only closed during weekends. I hope you will like this Article. For any Questions Comment below, also share by below links. Use Tradingview for technical analysis instead of mt4.

Note: All the viewpoints here are according to the rules of technical analysis. we are not responsible for any type of loss in forex trading. It will draw real-time zones that show you where the price is likely to test in the future. Your email address will not be published.

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I personally like to trade with the trend as you can get into some big moves early and ride them until the very end. Keep in mind that a rising moving average crossover indicates a momentum in the trend. In this article our emphasis will be on the 1 hour timeframe, to effectively make this work will have to also look at the higher timeframes and lower timeframes as well to make properly informed decisions on trade entry. Its primary function is to transform collected history data and trading hints. All the candlesticks seen between these two lines make up the one candlestick we see on the previous image. The blue line on the chart above indicates one candlestick on the daily chart.

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