Hi All! I’m pretty new to Forex. I’m having a blast moving through the babypips and other great material all over the web.
I have a question.
What does it mean when somebody says that they trade the daily chart/ how would I trade the daily chart? I’m wondering as it relates to, Oanda, for instance, but I’m sure that it is the exact same across other platforms. The reason that I’m confused is because when you log in and are looking at a chart of a currency pair, at the bottom of the chart, you can choose between “5y, 1y, 6m, 3m, …etc all the way until 1d (1 day)”, but then there is also another dropdown selection at the top of the chart where you can choose between “5 seconds, 1 minute, 5 minutes, … etc all the way until 1 day and even up to 1 week and 1 month”. So my question is- which one relates to the concept of “trading the daily chart”? The selection at the bottom or the top?
If someone could clear this up for me it would be so helpful and appreciated!!
Thanks!! Happy learning and trading, y’all.
Mark
Hi.
Either method of selection brings up the same chart.
Trading the daily chart means that you are working off of the daily chart or D1 in MetaTrader. Or put another way: you are basing trading decisions on the bars or information being displayed on the daily chart.
On the daily chart, each bar represents 1 full trading day (unless you’re using a line chart).
On some charts 1 day shows you a full day in different time increments (5 min, 30 min, etc.) whereas some will show 1 full day per bar as I mentioned above. If you’re not sure then hover over the bars and it will show you the timeframes.
Whether you are a short-term day trader or a medium-term exchange trader, you should always check the daily time chart as part of your daily market analysis every morning. The daily chart is the period of time most seen by professional hedge funds, trading banks, large operators and other important market players that can normally move markets.
The daily forex chart gives a forex trader an indispensable overview of the market from which he can create a long or short lateral directional bias. This is valuable information that will help you stay on the right side of the market.
Please learn to look at the daily chart as this will help you tremendously in your journey and if you can start off atleast paying attention to the daily chart you will be very much ahead. The lower time frames are mainly just noise. Can someone profit off of lower time frames? Sure. But I have been paying my bills with trading for over 14 years and my trades are always based off of the higher time frames. (Daily and weekly charts.)
And yes it is the D1 chart.
1 Like
I am trading based on daily chart means; I am looking for the market trend & nature based on the daily time frame!