Time is the Answer

So what’s the question?

It’s been a while since posting here and as what I think to be a typical person I had gotten side tracked. But doing other things for a while, no matter how long has a tendency to add to clarity at times.

What time frame is best to trade?

The question turns out to be one that I asked myself when I first started trading Forex. I decided at the time to make money the fast way –  use the 5 minute or 15 minute charts. Then I did quite a bit of training (Peter Bain’s course was a tremendous introduction) and I was off to the races!

The rest of the story is that I was able to keep my head above water (barely). It was more depressing than it was helpful. Keeping a positive attitude for a long period of time without the benefit of mass profitability is rather difficult. So gradually I went back to other things, other databases and my hobbies.

I didn’t want Forex to master me and the challenge was there. So every so often I would check a simple chart with a simple moving average and look for support and resistance. Since I wasn’t checking the charts very often, I wanted to get a feel for the market that I missed.  So I increased to time frames to 4 hours, daily and weekly.  Sometimes even monthly.  That seemed to show me the overall direction if there was one.  It showed me the times where the market was bouncing within a range. I began to predict where the market would head and many times it worked.

Then the light bulb went off. I changed my trading time frame to the daily chart, slapped a moving average that the daily charts seemed to follow and Voila! it worked!

So now I trade with the Daily charts, sometimes the four hour. I check the weekly charts for some major support and resistance. I mark the weekly support and resistance and go back to daily. It seems to be working quite well. That, and a technique that I learned from the wonderful Mr. Ponsi seems to have me relaxed and somewhat in the green.

Oh wait. I have to go. Another email about a million dollars in 30 days.  Sounds like that one just might work. (sarcasm off)

 

Posted on August 26th, 2015
» Feed to this thread
» Trackback

Leave a Reply