Time frames crucial for intraday forex traders

A day trader’s chief concern would be capture day swings. Of course day trades start and end the same day. Each day matters for intraday traders. This is where time frames come into focus. I always to recommend that day trading be done on 1, 5, 10 minutes bar chart. Intraday trades need to catch various rapid movements within the day and hence these charts are appropriate to focus on. Larger time frames may also be used for analysis. This depends mostly on trader specific strategies and the way of training. For instance some day traders may look at the hourly charts to gain an idea of the market behaviors in the last week. Again this is varies from one trader to another. Still other traders believe that bigger time frame analysis would be more beneficial. From personal experience I can say that more than necessary analysis leads to conflict and still further uncertainties emerge, and especially with novice traders. In other words, day trading can be simplified with smaller time frames and if larger frames hold you up from placing your trade then, it’s best to simply stop.

Day traders can best trade on a volatile and liquid market. Selecting a market here is crucial. For day traders the markets need to as volatile s liquid. The volatility needs to more stable rather than transitory. As I mentioned before, for intraday traders volatility is the ‘refuge’ every trading day. A liquid market will offer you with better order fill. This is vital because as a day trader you target is to make small pips whereas bigger slippage may eat away profits. For a day trader this may add up to a bigger sum.