Intraday Operations On Forex Market

Intraday trading operations on forex market are considered to be the most profitable but at the same time the most risky ones. Hence approach to intraday trading should be complex i.e. you should use all known methods of analysis and forecasting. One of the main conditions is the possibility to correctly choose time interval for analysis. First of all it is better to explore the market in long-term outlook monthly, weekly, and daily charts will help you have general tendency formed market dynamics, trend strength, boundaries of possible breakouts of support and resistance ranges. But you should not in any case strictly follow this analysis while trading intraday. This information is only useful as a guiding material.

For testing market on trading platform Meta Trader wile intraday operations it is very convenient to be guided by the system triple screen developed by A. Elder. Experienced traders advise using the following time intervals for the bar formation: 240 minutes, 60 minutes, and 15 minutes.


The choice of H4 (240 minutes) chart period is stipulated by the fact that it covers each trading session making it the most informative in long-term outlook. H1 (60 minutes) scale is popular on forex as a short-term money tracing. This period is used as a basic working interval. The scale is also very efficient in monitoring crowd behavior the so-called crowd psychology.

Short-term tendency is determined on 15-minutes time interval. Experienced traders suppose this position the most convenient for opening and closing positions with the possibility to gain profits over 20 pips. Many traders nevertheless prefer 1 or 5-minute time intervals for determining the time to open positions but these periods are obviously too short for using them as basic working interval. It is practically impossible to reap income over 20 pips.

To conclude the above mentioned we would like to note that 4-hour time interval indicates long term tendency that is used as confirming indicator, 60-minutes time interval is a basic working period for taking decisions: define the time spent on market, estimate the possible profit, direction, and level for placing stop-loss orders; 15-minute for choosing favorable time to open position.

By: Odrew Wise

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