The time frame is of fundamental importance for the strategy. There are market moments when the price can pass a long interval in a few minutes and go back (high volatility). Scalping strategies allow to earn on such moments, but to analyze the market the trader must see the price change for the shortest possible period. Therefore, M1 (1 minute) is set. It is logical that no minute changes will be visible on the hour interval. We can distinguish three basic styles, each of which will require its own timeframe.

Intraday Trading

With this strategy, a market participant needs from several minutes to several hours to execute transactions, and all transactions are executed within one trading day, without rollover. This trading method is the most common among forex traders because it is a kind of real-time trading. A trader can follow news releases and react to them instantly, thus increasing his profits. Timeframes between M1 and H1 are suitable for this style of trading. If you want to become a Forex trader, you have to choose on this website first.

Mid-Term Trading

In contrast to the day-trading it will take the trader several days to make a deal. This style is more secure and there is no need to follow the news releases, which enables the trader to devote less time to the activity. The level of stress at medium-term trading is much lower, but this style has one important nuance: it is not suitable for beginners. It is necessary to have wide knowledge and to be able to develop trading strategies, which only experienced traders can do. The time frame for such trading can be chosen between H1 and D1.

Long-Term Trading

However in practice such a style is more close to investing, because it takes from several weeks to months, and it uses not currency pairs, but securities or raw assets. One more specific feature of this style is safety and minimal risk percentage. Trader has practically no need to be aware of all market events, as well as to devote much time to trading. Long-term trading is most often used as the semi passive income. However, for getting considerable profit trader must be experienced in fundamental analysis, have deep knowledge of the market and have wide capital stock. This is why it is not safe to consider this variant for beginners – a wrongly set trading vector can cause loss-making orders even in all its safety. The timeframes between D1 and Y1 are used for long-term trading.