Almost all people who start trading currency automatically rule out the idea of currency trading the daily price chart. 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 speedy profits instead. However the reality is that you can make a lot of money trading this particular time frame.
Don’t get me wrong, it is possible to do very well trading the short term charts. Nonetheless is one of the hardest ways to benefit from currency trading because if you enjoy the markets every day, you will know that they move around very quickly and sometimes in a very random fashion. There is generally too much noise for making money consistently, regardless of which inturn system you use.
So the point can be that the daily charts is a really lot more profitable than the short time frames. They are a lot less stressful and the price techniques are far more predictable since many of the technical indicators undoubtedly are a lot more reliable. Therefore I would recommend you try and trade a lot of these charts if you are still battling to make money trading the intraday price charts.
If you end up looking at the fast paced 1 minute or 5 hour chart, the price flies over the place, seemingly at random. Over the daily chart, however, it could actually look as if it’s barely moving most of the time, which is why just really need to check this chart right at the end of each trading session, as soon as latest bar / wax light has closed.
You just ought to wait for the right trading types of conditions 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, in that case it can be quite easy to find winning trades, and the beauty is usually that you only need to be for your computer for around 10 minutes a day (at the end of the trading session). You can specify your target price preventing loss and let the trade unfold in it’s private time.
The only method I have found profitable on these shorter time frames is to trade early morning breakouts. This is where you wait for a modest overnight trading range on a single of the major pairs, thereafter trade in the same way as any subsequent breakout, using pivot points designed for additional guidance. Although Really easy to implement say that even this technique is not always that reliable.
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 points per trade, several times a day (if you are lucky). However you can make just as much profit, if not more profit, by trading a single position on the end in day charts.
That is why it is much better to utilise the longer term charts, plus the daily chart in particular is reasonably a good choice because so many several other traders trade this time frame as well. This means that technical examination works really well because we are all watching the same price levels and also the same indicators. It should be noticed that these indicators work a lot better on the daily chart than they do on the 5 minute chart, for example.