Best time frame for Forex trading

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Another big question – which time frame is the best? Again, it depends from trading styles, but I can give you few tips.
The lower time frame, the more automatic trading you will see. On time frames, such low as 1 minute there is no time to think slowly and analyze your decision twice. When price hit some important level, you may see strong counter move from that point (because of orders from robots).

Generally, I do not trade lower than 5 min time frame.

When you are looking for swing trades, then you should look at higher time frames such as 1 hour +.
Of course, you do not look only at one time frame. You should check higher time frames to know what is going on.
On lower time frame it may look like there is a downtrend, but higher time frames may suggest that main trend is up.

But I have a job…

OK, it is not like there is only one proper way to trade Forex. If you start your trading adventure, you probably do not have time to look a whole day at chart. Is there another way to do it? Yes. You can switch to higher time frame such as 1 hour, 4 hour or simply start with EOD trading. EOD – End of Day Trading is trading where you base your trading decisions on daily chart. Of course, you have position open for few days, your stop losses are wider, but also there is a chance to get a bigger move from stronger swing move.

Will your strategy work on lower time frames? Yes. Do not worry about that. In most cases your strategy will be perfectly fine on lower time frames. You may need to modify it and rebuild more or less, but it should be a solid strategy to move on to trade on lower time frames.

There is a great article about EOD trading by Forex Guy. You can read it here at http://www.theforexguy.com/forex-end-of-day-trading/.

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Part 1. Introduction to Forex trading Part 2. Trading tools Part 3. Money and position management in Forex