Most people who start trading fx automatically rule out the idea of buying the daily price graphs. This is because they prefer the easily pace of the short term graphs such as the 1 minute and 5 minute charts, and prefer to try and make quick profits instead. However the simple truth is that you can make a lot of money fx trading this particular time frame.
While you are looking at the fast paced 1 minute or 5 very small chart, the price flies above the place, seemingly at random. Relating to the daily chart, however, it could actually look as if it's hardly moving most of the time, which is why an individual really need to check this chart afterwards of each trading session, as soon as latest bar / candle has closed.
This is a much more relaxed way of trading nevertheless, you can make just as much money. By way of example when day trading you will probably get making profits in the region of 5-10 points per trade, several times a 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.
Don't get everyone wrong, it is possible to do very well forex trading the short term charts. Nonetheless is one of the hardest ways to make money from currency trading because if you enjoy the markets every day, ahead of time that they move around very quickly and quite often in a very random fashion. There is generally too much noise to make money consistently, regardless of that system you use.
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 several other traders trade this time shape as well. This means that technical test works really well because we are all watching the same price levels and also the same indicators. It should be remarked that these indicators work better on the daily chart than they do on the 5 minute chart, for example.
You just have to wait for the right trading types of conditions to be met on one of the major currency pairs, whether you are swing trading and looking for a price reversal, and also whether you are waiting for a possible breakout, for example. Take advantage of certain indicators to help you, consequently it can be quite easy to find receiving trades, and the beauty is that you only need to be pictures computer for around 10 minutes a day (at the end in the trading session). You can establish your target price preventing loss and let the trade unfold in it's own time.
So the point can be that the daily charts is a really lot more profitable than the shorter time frames. They are a reduced amount of stressful and the price moves are far more predictable simply because many of the technical indicators are a lot more reliable. Therefore To get the cheapest you try and trade these charts if you are still struggling to make money trading any intraday price charts.
The only method I have found profitable on these shorter time frames is to trade early morning breakouts. This is where you wait for a slender overnight trading range on one of the major pairs, and trade in the same way as any subsequent large, using pivot points meant for additional guidance. Although I have to say that even this technique is not always that reliable.