Most traders steer well clear of the higher time frames, they seem overwhelming, large and downright scary!

It is often thought that the lower time frames are better, because there will be more opportunities to take a trade.

This however is simply not true, trading the lower time frame charts reduces the accuracy of your trades. In this article, we will be looking at the 4 top reasons why you want to stick to trading the higher time frame charts.

First of all what do we mean by ‘higher’ time frame charts, what counts as a higher time frame? This is slightly subjective, some would view the 1HR Chart as a high time frame, others would say it is a low time frame chart. Personally, I would says it’s neither. A higher time frame to me would be anything above the 4HR Chart (the best being the 8HR, 12HR and the Daily).

1. The higher time frames get rid of ‘market noise’

In Forex, what we mean by ‘market noise’ is basically the rapid price movement on the lower time frame charts. An inexperienced trader will look at this fast price movement and see loads of different opportunities to trade. The reality is, these very small price movements happen so fast that they don’t give us a clear picture of the overall market sentiment, they are in fact insignificant in the greater story of the Bulls vs the Bears story.

For e.g. you could look at the hourly or 5 min chart and see the price action for the day, you will see a lot of price movement, with some candles apparently showing great set-ups. However, all of these candles (24 on the 1HR Chart and 288 on the 5MIN Chart), can all be expressed in a single candle on the Daily Chart. This single candle may just show indecision on the Daily Chart and not a move up or down. In short the higher time frame helps us to see the overall market sentiment a lot more clearly, it shows what price has done over a much larger span of time so it is far more significant and accurate.

2. Trading the higher time frames is less stressful

If you’ve ever traded the lower time frames you know one thing, you’re on constant edge! With the candles changing so often, you have to keep analysing them almost without any rest, all in a short space of time. It is very stressful and can lead to poor judgement in your trading, such as falling into emotional trading.

This isn’t how trading should be, it should be calm and relaxed. The last thing you want to do is stress and let your emotions take over when trading with actual live funds. Trading the higher time frames takes away the stress completely, you have more time to plan, execute and manage your trade. This is SO IMPORTANT to trading successfully.

3. No screen watching/You can actually live your life

The next reason for trading the higher time frame, follows on nicely from the previous one. Let me ask you a question, what is the point in trading if you cant live your life? Most of you know that if you are trading the lower time frames, you have to sit in front of the computer for long periods at a time.

I can not begin to tell you how good it feels to be able to trade (which I absolutely love doing) and live my life at the same time. This can only be done by trading the higher time frame charts, my main charts being the 8HR, 12HR and the Daily Chart. Think about what that means for a second, when I enter a trade I only need to check my charts a few times a day sometimes just once a day. This creates patience (another very important aspect!) and confidence which means you wait for the best possible trade opportunities only.

Remember, trading is not about always being in a trade or taking as many trades as you can. Anyone who tells you that is most likely not trading profitably, trading is about waiting for and taking the best trading opportunities that come by.

4. The Higher time frames are more accurate

And so that brings us to the main reason I trade the higher time frames..they are more accurate! I would rather wait, be patient and take a trade on the 12HR Chart, than to try and catch a trade on the 1HR Chart that has a greater chance of being a loss. Remember, the higher time frame candles are showing us the price action for a much larger time period, therefore they are more reliable.

This is why the higher time frames are more accurate, they are showing us the overall market sentiment, it is much clearer than if we were looking at a lower time frame.

So to conclude, trade the higher time frames! You’ll enjoy your trading more, the stress factor will pretty much be wiped out as you are only checking your charts a few times a day, and of course you will be more profitable as the higher time frames are so much more accurate.

Excellent article. A must read for all traders especially beginners.

Thanks Bil!

Jimmy wrote: Wed Apr 26, 2017 2:51 am Excellent article. A must read for all traders especially beginners.

Thanks Bil!

welcome Jimmy

i have ton of article for benefit higher time frame ,will update here