What charts to look at?

Beginner Questions
1

I’m just getting started paper trading on forex and am just going through the BP school. However, I have encountered that it has not really explained which a good default chart is too look at to analyze trends etc… I’m sure there isn’t a definite answer as to which may be best, but I’m also sure that the tick chart does not get analyzed as the 30 minute chart would.

So, what chart is a good place to start? 5 mins, 15 mins, 30 mins?

2

I think you should skip to the advanced methods of multi-timeframe analysis. This can compound the edge you have over the market using your normal analysis, since each move in the market is just a small piece of an even bigger move on higher timeframes.

I like using the top-down approach, where you analyze very high timeframes, say weekly/daily and then use that analysis to make finer and finer predictions as you lower the timeframes. The predictions you make on the very low time frames would theoretically be very appropriate from all perspectives on the market.

Have you ever entered a trade, only to have it lose, and then go up the timeframes and realize your trade didn’t look so hot from that view. Frustrating eh! I think this is the best method to weed out those bad experiences from your trading career :smiley:

3

Price is the same on all the time periods. You are under an illusion that looking at different time frames changes things. Pick a price N bars ago. Price is going be up or down from that point. Look at the most recent peak and valley. Price will be moving up from the bottom or down from the top that is the “trend”. People need to stop the delusions.

4

I guess my question to you would be this:

Which time frame do you use to choose where the peak is and where the valley is? Because every time frame has the peaks and valleys at different prices right, so why is the time frame you use better than the other time frames?

5

Yearly trader look for yearly time frame

  Monthly  trader look  for monthly time frame

  1  day time frame  for day trader & short swing to 1 to  2 weeks.
  

   1 day,   4  hr  ,  1  hour , 30  min  for  day  trader  &  short swing 
   trader  1 to 3 days. 

   4 hr , 15 ,  5 min for day trader 

    15 ,   5  min  &  1  min  for  day trader  trading  within  24 hr.

    5 min  &   1 min  for  Scalping    and   to look for  movement  of the 
    major trend  can look at  15  Chart .

    I  am a  short swing trader  and practice Scalping .   For  one day 
    trade  i look at  1 day ,  3 or 4 hr chart , 15 min & 5 min. 

    When i,m Scalping i look  at  5 & 15 min chart to see the overall of the 
    trend  and  i  entry at 1 min Chart.   They are also Scalping  only  look
    at 30 second,  1 min & 5 min Chart.   

    All depend on the  Individual  which  time frame  they want to  use
    and  they  may  familiar after practice it for a long period . But normally 
    the most will follow  about the above  note.
6

For scalping, I’ve had the opportunity to use Dukascopy’s trading platform for a few weeks, and they made available a tick chart that displayed the bid/ask band. I could not believe how easy scalping was using this tick chart and the 5m and 15m for trend finding. And I would say the tight spreads and market depth provided were a huge asset as well.

Problem is they require $50,000 USD deposit and I don’t have that kind of cash yet! I’m stuck with a broker I like, but is still a fixed spread broker, so I don’t even bother trying to scalp. Can’t wait till I can raise that $50,000 though!