TimeFrames: What timeframe fits my Forex strategy?

First, let's consider what a timeframe is at all. Our brokers offer us to display exchange rates in different timeframes. I recommend to consider the currency pairs with the candlestick analysis.

Note: for a Daily-Timeframe, each candle in the diagram contains the information of a whole trading day. In a 1 minute chart, each candle returns only 1 minute.
From this, one can conclude that a Daily-Chart contains much more information than smaller Timeframes and thus also more meaningful in an analysis is.

 

It is important to understand that each timeframe is just a representation of the times sales list from the order book. The order book is the mother of all Forex Charts, which lists and executes all orders of the market participants. If you put these data into a chart of candles, a Candlestickchart is created.

What timeframe fits me?

Every Forex trader has to decide for himself which trading style he wants to use. The higher the timeframe , the longer a position must be held.
If you feel bad to be invested overnight in a forex pair, swingtrading (trading positions over several days) will fall away. Daily and 4h charts are often used from swing traders.

 

If you want to close your positions in the evening (daytrading), it makes sense to act on small timeframes, like the 1, 5 and 15min chart.

 

Here, too, you may notice how versatile and different the foreign exchange trading can be.