Nearly everybody who start trading currency automatically rule out the idea of trading the daily price charts. This is because they prefer the easily pace of the short term charts such as the 1 minute and 5 minute charts, and prefer to try and make instant profits instead. However the reality is that you can make a lot of money currency trading this particular time frame.
You just need to wait for the right trading circumstances to be met on one in the major currency pairs, whether you are swing trading and looking for a price reversal, or simply whether you are waiting for your possible breakout, for example. Take advantage of certain indicators to help you, in that case it can be quite easy to find profiting trades, and the beauty is normally that you only need to be for your computer for around 10 minutes a day (at the end with the trading session). You can specify your target price preventing loss and let the trade unfold in it’s own time.
The only method I have discovered profitable on these not as long time frames is to trade early morning breakouts. This is the place you wait for a modest overnight trading range one of the major pairs, thereafter trade in the same way as any subsequent large, using pivot points meant for additional guidance. Although I’ve got to say that even this technique is not always that well-performing.
Don’t get all of us wrong, it is possible to do very well trading the short term charts. Nevertheless it is one of the hardest ways to make income using currency trading because if you keep an eye on the markets every day, on the liner that they move around very quickly and quite often in a very random fashion. There does exist generally too much noise to make money consistently, regardless of that system you use.
This is a lot more relaxed way of trading nevertheless, you can make just as much money. For instance when day trading you will probably be making profits in the region of 5-10 items per trade, several times every day (if you are lucky). Nevertheless, you can make just as much profit, or even more profit, by trading a single position on the end of day charts.
If you end up looking at the fast paced 1 minute or 5 hour chart, the price flies with the place, seemingly at random. On the daily chart, however, it may look as if it’s barely moving most of the time, which is why you only really need to check this chart afterwards of each trading session, when the latest bar / wax light has closed.
So the point is normally that the daily charts is a lot more profitable than the not as long time frames. They are much less stressful and the price techniques are far more predictable considering many of the technical indicators is a lot more reliable. Therefore I would recommend you try and trade those charts if you are still troubled to make money trading any intraday price charts.
That is why it is much better to utilise the longer term charts, and the daily chart in particular is quite a good choice because so many additional traders trade this time mode as well. This means that technical analysis works really well because everyone is watching the same price levels plus the same indicators. It should be noticed that these indicators work a lot better on the daily chart as opposed to they do on the 5 minute chart, for example.