A question on pips… I noticed a lot of people look for 100 or so pips in their trading but looking on a 4hr chart I noticed that some of the larger candles are 300+pips… is this correct? Or are they 30.0 pips?
Attached is a screenshot from my phone, notice the price at the two red lines…
Is this the correct calculation for the size of that black candle? :
1.11768 – 1.11416 = 0.00352 (352 pips) ? Or is it actually only 35.2 pips? I’m confused because if it’s 352 pips then you really only need to hold a position for one 4hr candle to achieve 300 pips in profit??
The OHLC on a candle is shown in pipettes, 1/10th of a pip, however it is very possible to get candles 300 pips long, especially on the bigger time frames.
Strongly recommend you spend a few weeks studying at the free school here, if you’re struggling to read candles after being a member for over a year you’re taking a big risk trading forex.
pip is 0.0001 of a price for example, when EUR/USD moves from 1.1100 to 1.1110 it makes 10 pip movement. The calculations doesn’t depend on timeframe basically one 4H candle is formed by four 1H candles, or 240 1M candles.
Let me know if you have any other questions