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Forex Stock Exchange Forum  » Forex and Stock Trading English Forum » General Trading Discussions » Why it is so difficult to trade the lower time frame

Why it is so difficult to trade the lower time frame

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Teddy Burkett
Chris
adamsmiths
7 posters

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Eric Young



Essentially the individuals who are scalper use to take after lower time frames to open and close their trades inside a brief span. In any case, bring down time spans are adaptable and the candles change effortlessly that is the reason a trader can't take choice promptly. A few brokers are locked in with technical mistakes and their platform is locked in with managing work area, reqoutes and so on.

Dolf Kessler



In my sense lower timeframes consists of maximum amount of noises and it really makes a trader understand the macro structure of the market. Lower timeframes are not quite helpful for understanding the overall trend and market flow as a result you might get wrong idea about the market scenario.

Remainder

Remainder

The smaller the timeframe, the less predictable the graph acts, it's harder to identify the trend and there are many other unfavourable factors.

Guest


Guest

Trading in the lower time frame is very hard for some traders due to the lack of knowledge about the market context. As a trader i try to avoid making trades on the basis of lower time frame analysis. I actually trade on H4 and H1 for the intraday setups and D1 for swing trading setups. I am always looking forward for trading in the longer time frame rather than trading with M5 or M15 for getting a few pips. I used to trade in these pairs earlier but now i m trading with one of the best Forex trading broker who provided me all kinds of educational materials to enhance my knowledge in Trading.

Stuart Broad

Stuart Broad

I think this is not the case with everyone. Some traders can trade lower time frame very well and earn good enough.

Teddy Burkett



Forex is the biggest capital market in the world. You can exchange here foreign currency through online. This is the most competitive market that everyday more than $4 trillion of business runs here. You cannot imagine that there are more than thousands of brokers are around the world. Selection of broker is very tough here.

Chris

Chris

Basically those who are scalper use to follow lower time frames to open and close their trades within a short time. But lower time frames are flexible and the candlesticks change easily that’s why a trader can’t take decision immediately. Some brokers are engaged with technical errors and their platform is engaged with dealing desk, reqoutes etc.

adamsmiths



The forex market can be traded in a number of different ways. There no fixed trading strategy to trade the currency market and every trader’s goal is to make money. Most of the retail traders tend to trade the lower time frame since they get lots of trading opportunity. But as the expert traders never look for high-frequency trading opportunity rather their main focus is on quality trade execution. When you trade the lower time frame you are more prone to the false spike and trading signals. For this very reason, the expert traders at Saxo always suggest the novice traders trade the higher time frame. It’s true that if you trade the higher time frame then you will have less trading signals. But trading the higher time frame will give you quality trade setups capable of generating high profit in the market. Let’s discuss why it is so hard to trade the lower time frame.
Market noise
The forex market is always changing its movement and as a professional trader, you main goal is to predict the market movement. When you do your technical analysis in the lower time frame you are actually doing the analysis along with the market noise. For this very reason, many retail traders open orders hit the potential stop loss.In order to become a profitable trader you need to focus on higher time frame data as there as less market noise and you will be able to find key support and resistance level. Most of the time the lower time frame gives you minor support and resistance level which get breached very often and thus the traders lose money.
 
Reliability of the trade signals
Quality over quantity is a well-known proverb among the professional traders. The expert trader always focuses on quality trade execution and thus they use the higher time frame. Unlike the expert, the rookie traders get involved with the lower time frame and they think that the more they will trade the more money they will make. But when it comes to real life trading the less you trade the better chance you have to make money. The expert traders in the options trading industry always execute high-quality trades and ignore the lower time frame trade setup. They know very precisely that a single quality trade is capable of generating whole month’s profit. So for this very reason, they always remain focused and trade the higher time frame.
 
News trading
The lower time comes extremely useful for the news traders. If you look at the expert news traders then you will see that most of them use the price action confirmation signal in the 5 minute time frame to trade in favor of the news data. Unlike the new traders, they always use précised stop loss and take profit level while trading the news. They always take 2-3 % risk while trading the news release since they know that losing is just a part of the trader’s career. So if you face any loss in the market never get frustrated rather wait for the next trading opportunity and trade with proper money management. But as a news traders you should also do the higher time frame analysis to find the key support and resistance level. Some expert traders often use the multiple time frame analysis to filter the best possible trades in the lower time frame. But this is one of the most complex tasks in the forex industry and requires an extreme level of trading knowledge and experience.

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