Most people who start trading currency automatically rule out the idea of trading the daily price graphs. This is because they prefer the fast pace of the short term charts such as the 1 minute and 5 minute charts, and prefer to try and make speedy profits instead. However the simple truth is that you can make a lot of money trading this particular time frame.
That is why it is much better to employ the longer term charts, and the daily chart in particular is kind of a good choice because so many other traders trade this time shape as well. This means that technical examination works really well because we are all watching the same price levels plus the same indicators. It should be noticed that these indicators work better on the daily chart as opposed to they do on the 5 minute chart, for example.
If you end up looking at the fast paced 1 minute or 5 hour chart, the price flies above the place, seemingly at random. Relating to the daily chart, however, it could actually look as if it’s hardly ever moving most of the time, which is why you only really need to check this chart afterwards of each trading session, in the event the latest bar / wax light has closed.
You just need to wait for the right trading types of conditions to be met on one of the major currency pairs, whether you are swing trading and looking for a price reversal, and also whether you are waiting for a possible breakout, for example. Take advantage of certain indicators to help you, after that it can be quite easy to find receiving trades, and the beauty is normally that you only need to be at your computer for around 10 a matter of minutes a day (at the end for the trading session). You can arranged your target price and prevent loss and let the operate unfold in it’s own time.
So the point can be that the daily charts might be a lot more profitable than the short time frames. They are much less stressful and the price goes are far more predictable because many of the technical indicators are a lot more reliable. Therefore I would recommend you try and trade a lot of these charts if you are still troubled to make money trading any intraday price charts.
This is a way more relaxed way of trading you can make just as much money. By way of example when day trading you will probably get making profits in the region of 5-10 elements per trade, several times a day (if you are lucky). However you can make just as much profit, if not more profit, by trading one single position on the end of day charts.
Don’t get myself wrong, it is possible to do very well trading the short term charts. Even so it is one of the hardest ways to earn money from currency trading because if you keep an eye on the markets every day, you will know that they move around very quickly and frequently in a very random fashion. There exists generally too much noise for making money consistently, regardless of that system you use.
The only method I have found profitable on these shortest time frames is to trade early morning breakouts. This is where you wait for a slender overnight trading range using one of the major pairs, thereafter trade in the same direction as any subsequent breakout, using pivot points to get additional guidance. Although Really easy to implement say that even this process is not always that trusted.