When trading in currency market it is recommended to pick up a specific time frame of a Forex chart and trade according to it only. Experienced traders use the time frames of 4 hours, 24 hours or 1 week. There are certain advantages and disadvantages for the big time frames. The bigger is your time frame, the more funds you have to deposit to your trading account because each trading position needs higher margin. But at the same time you have the chance to make higher profits. The market’s situation is more predictable for higher time frames but it may take you few days to find a good opportunity to enter the market. In this post we would like to discuss a strategy of trading in 4 hours time frame using the candle stick charts that can be found at all Singapore brokers
Be prepared that trading with 4 hours candle stick charts requires a lot of patience and time. It may take you few days to find a good situation to enter the market and also from 12 hours to 5 days to stay in the market. This technique is based on the trends that sometimes appear in the Singapore Forex market. The target is to enter the market in the beginning of the trend and leave it in the end of the trend. As for this strategy a trader must check the market and his open trades every 4 hours after the last candle in the 4 hours chart is completed.
While analyzing the market it is recommended to check the charts for the certain currency pairs for 4-5 days before on a 4 hours candle stick chart in order to find out if there were some trends before or there is an opportunity for a potentially good downward or upward trend coming. The choice of opening or closing a trading position may be made only every 4 hours when the last candle is completed and a new one has begun.
If you notice that the last three candles show that the trend is going up, this is a good time to open a buy position. If at least 2 last candles go down, this is a situation for a potential downward trend and you can make a sell position. In order to minimize possible losses you can use such orders as take profit and stop loss. You can set a take profit order after 120 points in case if the prices between the opening and closing of the market did not go over 80 pips for the last five trading days. If the prices exceeded 80 pips for the last 5 days, you can set up the take profit order after 240 points.
We wish all traders profitable trading and invite them to share their experience of Forex trading in Singapore.
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Tags: forex trading, four hours chart, singapore forex, trading method, trading strategy