Almost all people who start trading fx automatically rule out the idea of currency trading the daily price chart. 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 instant profits instead. However the simple truth is that you can make a lot of money currency trading this particular time frame.
Don't get me wrong, it is possible to do very well forex trading the short term charts. Nevertheless it is one of the hardest ways to benefit from currency trading because if you see the markets every day, you will know that they move around very quickly and sometimes in a very random fashion. There exists generally too much noise to create money consistently, regardless of of which system you use.
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, or whether you are waiting for some possible breakout, for example. Using certain indicators to help you, consequently it can be quite easy to find receiving trades, and the beauty can be 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 operate unfold in it's own time.
The only method I have found profitable on these shorter time frames is to trade early morning breakouts. This is where by you wait for a slender overnight trading range using one of the major pairs, thereafter trade in the same guidance as any subsequent breakout, using pivot points for additional guidance. Although I have to say that even this method is not always that dependable.
This is a 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 a day (if you are lucky). However, you can make just as much profit, if not more profit, by trading one single position on the end in day charts.
If you end up looking at the fast paced 1 minute or 5 very small chart, the price flies above the place, seemingly at random. On the daily chart, however, it may possibly look as if it's hardly moving most of the time, which is why a person really need to check this chart right at the end of each trading session, in the event the latest bar / candle has closed.
So the point is normally that the daily charts can be a lot more profitable than the not as long time frames. They are a lot less stressful and the price moves are far more predictable since many of the technical indicators undoubtedly are a lot more reliable. Therefore I would recommend you try and trade these kind of charts if you are still struggling to make money trading the intraday price charts.
That is why it is much better to apply the longer term charts, and the daily chart in particular is pretty a good choice because so many various traders trade this time frame as well. This means that technical exploration works really well because everyone is watching the same price levels as well as the same indicators. It should be pointed out that these indicators work much better on the daily chart than they do on the 5 minute chart, for example.