From SavageWiki
Tips for Trading Forex Only using the Daily and Five Minute Charts
Trading with daily charts and five minute charts require different strategies. If you are an impatient trader who wishes to make quick pips than a few minutes charts are ideal for you. So if you're a patient trader who are able to wait for couple of days to get a trade to finish, then daily charts are to suit your needs.
5M charts are fantastic for day traders who love to scalp the forex market. Scalping is a trading strategy that entails quickly entering and exiting the market just in order to make a few quick 10-20 pips per trade. Now, there is a problem once you invest the five minute charts. You will find plenty of noise on these charts.
The shorter time interval you use around the charts, the more noise they are going to contain. What is noise? Noise may be the random movement in the market. You can find trading systems that profitably use five minute charts. Five minute charts mean lots of trading signals and quick action. But the presence of noise makes many of these trading signals false. You might need a good and robust trading system to trade the five minute charts.
forex end of day trading
These false signals on the five minute charts is a real problem and may make your trading system unprofitable. As well as the progresses 5 minute charts can be really short something such as 10-15 pips. But, if you are searching for quick trades than 5 minute charts are best for you.
Round-the-clock Charts i think tend to be better. They've got less noise and you can find high probability trade setups on these charts that may allow you to hundred of pips per trade. The great thing, automobile monitor the daily chart such as the 5M charts. Daily charts are perfect for end of day trading investing.
There are many good daily charts trading systems. Round-the-clock charts are fantastic for swing traders. Swing traders try to find short term trends in the market that last for a few days. Using daily charts, you are able to enter those trends at the right moment and ride them up until the end escaping . right before the reversal making as much pips as possible.
Swing trading is the best for those people that have regular jobs and wish to still make money from the forex market. You are able to trade these daily charts at the conclusion of the afternoon after your work. Go into the trade, put the stop-loss while using daily charts and hang your profit target. Overnight, again look into the daily chart to see how good your trade is going, move the stop-loss in order to boost your position. Simple!
Source: http://wiki.savage-central.com/index.php/User%3AGilberteBlouin45
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