Which Timeframe is Best for Trading?
The three most common timeframes are intraday, daily and weekly. Choosing which timeframe to use is almost as important as choosing the strategy that fits your trading style and personality.
It is generally advised for newbies/ beginners to trade higher timeframes as they have less false moves…” noise” and the patterns (Double Tops, Double bottoms, Head&Shoulders) are more reliable.
Intraday charts are the 15 min, 30 mins and 1hour charts. (Those less than 15 mins are for scalpers)
To trade intraday charts you will need to devote a lot of time to the markets and this may be impossible if you have a full-time job or other responsibilities-cooking, taking your kids to school etc.
Trading intra-day, however, guarantees a profit at the end of the day provided you hedge your trades by entering different pairs. Any losses will be balanced with winning trades giving you either small loss, profits or breakeven.
This the most common chart used by traders because all traders – fulltime or parttime can review the charts at the end of the day. To decide the trend- Is it a trending or chopping market? They can also make a bullish or bearish bias for the next day.
Weekly charts are difficult to trade because they require discipline. You must do your analysis during the weekends and stick to your bias till the next weekend. It is very easy to change your trade direction in the middle of the week, to move your stop loss, or to take your profits early.
You need to resist looking at the charts constantly during the week and to keep your emotions in check. If however, you can master the weekly charts there is a lot of money to be made and you will ride the trends longer.