Updated: Jun 9
Your task is to choose the range or their combinations where trading will be profitable. Familiarize yourself with the short characteristics of the time intervals.
The higher the time interval, the more `` clean '' the graph is and the better the main trend on the market is visible, the analysis you spend less time compared to the previous interval, in addition, you have a lot of time to think about the parameters of the order and if something goes wrong, you can calmly analyze the situation.
Rush and emotional approach is not recommended.
The lower the interval, the more time you have to devote to data analysis and trading itself, a proven strategy and experience are necessary, being very disciplined and resistant to stress. If you are just starting the adventure with Forex (and probably it is;)) and you have a lot of time to analyze the data, I do not recommend you to observe intervals other than D1, unless as a curiosity, of course, the choice is yours :). Below is a small, subjective list of the pros and cons of time periods.
high time interval
1. minimal experience needed
2. you have a lot of time to analyze the market and correct mistakes in the strategy
3. less stress related to trading
4. Clear market review
1. few signals to take a position in relation to lower time intervals.
low time interval
1. more potential positions
2. potential greater profit
1. needed experience and proven strategy.
2. strategy can indicate many false signals of taking a position
3. taking action quickly under stress
4. large price fluctuations which may cause SL to close the position
5. stress resistance
6. high self-discipline
7. Little time to correct strategy errors
8. you must spend more time trading
As you can see, the lower time interval is much more demanding