Trade Intervals and Time To Trades

Trade Intervals
While the Foreign exchange market is open, the prices are
constantly fluctuating. The charting software interprets this data by
dividing the continuous (constantly changing) data into various
time intervals. For each interval, the chart software lists an open
price a low price, a high price, and a close price. The open price is
the price at the beginning of the period. The low price is the lowest
price achieved during the period. Similarly the high price is the
highest price achieved during the period. The close price is simply
the last price achieved during the period. To view the data just
click on the spot on the chart where you would like to view the
time frames data. To the right you will see the open/low/high/close
info. You can scroll to different time frames by using the right/left
keyboard arrows to view the data for other time intervals.
Yon may choose a desired time interval to trade under. Depending
on the hading software, you may look at charts with trading
increments of tick, 1 min, 5 mill, 10 min, 15 min, 30 min, 60 min,
and daily. If you would like to enter a trade and monitor it for a
few hours and get out of the trade you should use 15 min charts. If
you would like to enter a trade that could last 12-24 hours, use the
30-min charts. If you would like to enter a trade for a few days use
hourly charts. If you would like to enter a trade for a few months
use the daily chart info. The length of the trade can vary; the chart
interval is only a rough estimate of how long the trade will last
The larger the time interval, the wider the price movement will be.
You should expect to see a higher price gain from a trade entered
using daily charts, than you would see from the 15 min charts. The
daily chart based trade may take weeks or even months to run its
course. Per trade the 30 min charts will have a higher profitability
than the 15 min charts. However, you can hade more trades using
the 15-min charts, they will compound to more profits.
Here is a loose example that was created to be used as an
illustration. Suppose the average profit per trade (average of profits
and losses) for the 30 min charts is $35. The average profit per
trade for the 15 min charts might be $23. But the 15 min charts
have trades develop twice as often, so you can trade 2 trades using
the 15 min charts for every trade you use with the 30 min charts.
So the two 15-min trades would yield $46, >$35. {Please do not
rely on these numbers; they are only for illustration purposes.}
When to look for trades
Trades develop when there is heavy trading volume. Heavy trading
volume occurs when the big markets are open. Here are some good
times to look for trades (although trades can happen at any time).
Trades actually develop with relatively the same frequency,
regardless of time. As long as the Forex is open, there is about the
same chance that you will find a trade, whenever you look. If you
want to take a chunk of time where you might find more trades,
look at the market during the time frame of 9am EST-12pm EST.
New York Market trade turns 8am-lpm EST.
London Market trade times 1am-5am EST.
Tokyo Market trade times 5pm- 10pm EST.
Canada Market trade times 10am - 3pm EST.
Australia Market trade times 7pm - 12am EST.