Podcast:

Which time frame charts should I look at?

In this video:

00:23 Different Timeframe Chart Issues

01:28 How To Make Technical Trading Easier

03:14 What Works For You

Are you confused about what timeframe Forex charts to be looking at?

If that sounds like you, listen up I've got some great news for you.

Hi traders, Andrew Mitchem here, the Forex trading coach and today is Friday the 11th of September.

Different Timeframe Chart Issues

I wanted to talk about that issue about different timeframe charts because hardly a day goes past without I get an email from somebody, somewhere in the world saying, “Andrew, I'm just getting really confused looking at all the different charts on my platform. Not only do I need to figure out what currency pairs to trade, I don't need to try and figure out what timeframe charts to trade and they're all telling me different messages, how do I get around it?”

Well, really you need to figure out what type of trader you are and experiment to start with.

You know, figure out whether you like the shorter timeframe charts or the longer timeframe charts or a combination of both and really it's about finding what works for you. The great thing about the way that I trade and the way that my clients trade is that because we use price action and technical analysis, the actual strategy and the understanding of the market can work on any timeframe. I've got traders that trade five minute charts, some even trade one minute charts and 15, 30, right up to people that trade daily charts, weekly charts, monthly charts. It's finding that combination that works for you.

How To Make Technical Trading Easier

One thing I would say is that to make technical trading easier, I would strongly suggest that what you do is only look for a new chart setup, a new potential trade only on the completion of a candle. If you're trading a 15 minute chart, the only time you're looking for potential new trade setup is on the close of a 15 minute candle. If it's a one hour chart, it's only on the close of that one hour candle. The great thing about having that methodology behind your trading is it means that you're not scared to leave your charts. You're not staring every single price movement and every single pep up and down, worried about when to enter.

That is one of the benefits of using candle patterns and candle analysis over multiple indicators or crossing over, which could happen at any time. That's why I strongly suggest you do that. You look at, if you're say trading a one hour chart, you only look at the close of every one hour. It means that you know that right now as I'm recording this, it's five past two in the afternoon here in New Zealand. I've just looked at the one hour charts, that's why I'm recording this now after they've gone. I know I've got 55 minutes until 3:00 o’clock my local time.

At that time, I can look at the one hour charts and the six hour charts, because the six hour charts close at 9:00, 3:00, 9:00 and 3:00 my local time. That just makes life so much easier. What I also suggest you do is, when you see a chart pattern like a good technical setup on the timeframe chart, let's say a 15 minute chart, trade off that 15 minute chart. Don't worry so much about what's happening on other timeframe charts, otherwise you'll get yourself completely confused. If the trade setup looks really good on that 15 minute chart, take it and trade and manage that trade off of 15 minute charts.

What Works For You

Really you need to discover what works for you. If you're a scalper and you like the shorter timeframe charts of say five, 15 minutes, even up to an hour, so if you're a scalper, someone who likes to trade the one, five and even 15 minute timeframe charts,