At the time we observe the trading time frame, the movement of the price bar depicts the emotional state changes to market participants on a certain period of time. Whether on a time frame of 1-hour, 4-hour or daily, every bar prices reflect emotion and sentiment of market participants. On a 1-hour time frame, we will see changes in emotions of market participants in the last 1 hour shown by the movement of the price bar has changed.
With the time frame of 1-hour or 4-hour, will the more emotional changes and market data price change shown compared to the 5-minute time frame. Similarly, daily trading time frame will show more data on price changes compared to the 1-hour time frame.
Which is the best time frame for trading? This relative and depends heavily on the method and strategy of each trader, but the time frame trading could affect the determination of stop loss and target, or risk/reward, which ultimately could have an impact on the chances of profit or loss. This article exemplifies the influence of time frame against the validity of the trading signal (a trusted trading signals), and the possibility of trading results that will be obtained.
The relationship between the time frame and the validity of the trading signals
Suppose the market such as personal relations. The longer a person, you will get to know more and know whether the person is trustworthy or not. If a lot of people say that the A trustworthy then chances are you will believe. You can not determine whether someone can be trusted or not when You are in the process to find out.
A more specific example, suppose you meet someone for the first time. Well, where is the more accurate time to find out the person's character and personality, talk or chat with him for 5 minutes or as long as a full day? Of course the older right? The longer you know someone, the more accurate your knowledge about the person.
As illustrated earlier, trading with high time frame could have represented you meet people who have long been unknown to you so that you can predict how he will react to your actions. Instead of trading with low time frame (5 minutes or 1 minute) as you meet with people who you know so that you need more time to learn his character.
For example the following chart 5 minute USD/JPY. From the picture we can not know whether the trend of prices are up or down, with a movement so fast and that sentiment is not consistent. The movement of the total price that looks more or less 6 hours with range trading only 20 pips.
With the time frame of 1-hour or 4-hour, will the more emotional changes and market data price change shown compared to the 5-minute time frame. Similarly, daily trading time frame will show more data on price changes compared to the 1-hour time frame.
Which is the best time frame for trading? This relative and depends heavily on the method and strategy of each trader, but the time frame trading could affect the determination of stop loss and target, or risk/reward, which ultimately could have an impact on the chances of profit or loss. This article exemplifies the influence of time frame against the validity of the trading signal (a trusted trading signals), and the possibility of trading results that will be obtained.
The relationship between the time frame and the validity of the trading signals
Suppose the market such as personal relations. The longer a person, you will get to know more and know whether the person is trustworthy or not. If a lot of people say that the A trustworthy then chances are you will believe. You can not determine whether someone can be trusted or not when You are in the process to find out.
A more specific example, suppose you meet someone for the first time. Well, where is the more accurate time to find out the person's character and personality, talk or chat with him for 5 minutes or as long as a full day? Of course the older right? The longer you know someone, the more accurate your knowledge about the person.
It is very similar to trading. The more you often learn time frame trading high as daily or 4-hour, the more you will get a more complete picture and thorough about the State of the market. High time frame payload is more complete than the lower time frame because it shows more data and trading periods.
As illustrated earlier, trading with high time frame could have represented you meet people who have long been unknown to you so that you can predict how he will react to your actions. Instead of trading with low time frame (5 minutes or 1 minute) as you meet with people who you know so that you need more time to learn his character.
For example the following chart 5 minute USD/JPY. From the picture we can not know whether the trend of prices are up or down, with a movement so fast and that sentiment is not consistent. The movement of the total price that looks more or less 6 hours with range trading only 20 pips.
https://www.mql5.com/en/signals/author/hermanfendy
https://www.mql5.com/en/market/product/5481
