Aug 13 2010
When trading in online market it is recommended to decide on a certain time frame of a Forex chart and trade according to it only. Experienced traders use the time frames of 4 hours, 24 hours or 1 week. There are certain benefits and disadvantages of the big time frames. The bigger is your time frame, the more money you have to put to your trading account because each trading position needs higher margin. But at the same time you have the chance to make higher profits. The market’s behavior is more balanced for bigger time frames but it may take you more time to find a good opportunity to open a trading position. In this article we would like to share a method of trading in 4 hours time frame using the candle stick graphs that can be found at all
Singapore brokers
Be prepared that trading with four hours candle stick charts requires much patience and time. It may take you much time to find a good chance to enter the market and also from 12 hours to 5 days to stay in the market. This technique is based on the trends that sometimes happen in the
Singapore Forex market. The goal is to open a trade in the beginning of the trend and close a trade in the end of the trend. Following this strategy a trader must analyze the market and his open trades every 4 hours after the last candle in the 4 hours graph is completed.
While analyzing the market it is recommended to check the prices for the certain currency pairs for 4-5 days back on a 4 hours candle stick chart in order to find out if there were some trends before or there is a situation for a potentially good downward or upward trend coming. The choice of opening or closing a trading position may be taken only every 4 hours when the last candle is completed and a new one has started.
If you see that the last three candles show that the price is going up, this is a good signal to open a buy position. If at least 2 last candles go down, this is a signal for a potential downward trend and you can place a sell position. In order to minimize possible losses you can use such orders as take profit and stop loss. You can place a take profit order after 120 pips in case if the prices between the opening and closing of the market did not go over 80 pips for the last five trading days. If the rates exceeded 80 pips for the last 5 days, you can set up the take profit order on 240 points.
We wish all traders profitable trading and invite them to share their experience of
Forex trading in Singapore.
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