What is the Best Time Frame Chart to Trade?

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#451: What is the Best Time Frame Chart to Trade?

In this video:

00:26 – The best time frame chart to trade?

01:31 – Even more time frame charts now available on MT5

02:08 – How I analyse the market each week

03:14 – Trade only at the close of a candle

03:42 – Trade at 5pm EST New York Time

04:21 – Where is the best candle pattern showing?

05:25 – Have a look at Blueberry Markets when looking for a broker

06:35 – Subscribe and share this video

What's the best timeframe chart to trade? You've got so many options now, and it can be very confusing, so let me help you with that and more right now.

Hey, traders, it's Andrew Mitchem, here at The Forex Trading Coach with video and podcast number 451.

The best time frame chart to trade?

And I get asked the question every week, "Andrew, what's the best timeframe chart to trade?" And that's it. People get very confused. They want to know the best. The answer is really there is no one best timeframe. But as a trader, I believe that you need to look at multiple timeframe charts.

Now, the issue that a lot of people have is they might be seeing a potential buy trade on one timeframe. And you might have seen a down trend and the trend looks like it's reversing. The market looks very oversold, and you're thinking, "I'm looking for opportunities here to buy it back up again." And that may be on, let's say, a one hour chart. And then you go to a four hour or six hour daily chart, and it's clearly in a down trend. And you're going, "Oh, but I'm now looking at this being overboard and it looking like it's going to fall. But when I click through to a different timeframe, it looks like it's going to start rising." And that complete confusion and you're not really sure what's happening in the market.

Even more time frame charts now available on MT5

And I suppose now with MT5, if you're on MT5, you now have the option of far more built in timeframe charts that MT4 never offered. As an example, you can trade two hour, three hour, 6, 8, 12 hour charts that on MT4, they were never there a standard timeframe charts.

And so potentially this leads to even more confusion for people because they got even more timeframes to scan through and you can even go down to the number of minutes on MT5 as well. By the way, I suggest that you don't trade anything shorter than a one hour chart ever. It's just not worth it.

So you can see the confusion that people have there.

How I analyse the market each week

So for me, when I analyse the market each week, at the beginning of each week, I go through the weekly charts and I look at the anticipated strengthen and weaknesses on different currencies and the currency pairs. In other words, where I'm seeing on the bigger timeframe, likely movement up or down for that week. I do the same each day based off the daily charts as well. So I say that within the day, the next 24 hours, the euros looking really strong and the U.S. is looking really weak. Therefore, the Euro, U.S. dollar, I'm anticipating it's going to go up. Doesn't mean to say, I'm just simply taking a buy trade, but it means to say that I'm preferring buy trades if I see them.

If my weekly analysis suggests that the Euro, U.S. is heading up and my daily does, then I'm really ideally focusing on looking for buy trades on the Euro, U.S. on maybe a 12-hour chart or four hour, whatever it might be that you are trading, still according to your candle pattern. But you can see the issue that people have with the confusion of different timeframes and what they're saying.

Trade only at the close of a candle

So I think it's also really important that you only trade at the close of a candle as well. That stops a lot of the confusion. And at that time everything's set.