PittStrode823
From Nema Wiki
Tips for Trading Forex Only using the Daily and Five Minute Charts
Trading with daily charts and five minute charts require different strategies. If you're an impatient trader who would like to make quick pips than 5 minutes charts are best for you. So if you're an individual trader who are able to wait for a day or two to get a trade to finish, then daily charts are for you.
5M charts are perfect for day traders who love to scalp the forex market. Scalping can be a trading strategy that entails quickly entering and exiting the marketplace just to make several quick 10-20 pips per trade. Now, there exists a problem once you trade with the 5 minute charts. You will find a lot of noise on these charts.
The shorter enough time interval you use about the charts, the more noise they'll contain. What's noise? Noise will be the random movement in the market. You will find trading strategies that profitably use five minute charts. Five minute charts mean lots of trading signals and quick action. But the presence of noise makes many of these trading signals false. You will need a good and robust trading system to trade 5 minute charts.
These false signals about the five minute charts is a real problem and may help make your trading system unprofitable. In addition to the progresses the five minute charts can be very short something such as 10-15 pips. But, if you are looking for quick trades than 5 minute charts are best for you.
Round-the-clock Charts in my opinion tend to be better. They've less noise and you will find high probability trade setups on these charts that can allow you to hundred of pips per trade. The great thing, auto monitor the daily chart such as the 5M charts. Daily charts are fantastic for end of daytrading.
There are numerous good daily charts trading strategies. Round-the-clock charts are perfect for swing traders. Swing traders look for short term trends on the market that continue for several days. Using daily charts, it is possible to enter those trends on the right moment and ride them up until the end escaping . prior to the reversal making as much pips as possible.
Swing trading is the best for those people who have regular jobs and want to still profit from the forex market. You can trade these daily charts at the end of your day after your task. Enter in the trade, position the stop-loss while using daily charts and hang your profit target. Overnight, again look into the daily chart to determine how good your trade is going, move the stop-loss just to boost your position. Simple!
