Most FX trading platforms allow you to look at tick, 1 minute, 5 minute, 10 minute, 1 hour, 1 day, 1 week date in real time. If you’re FX trading platform does not allow you to do this move to another one! The time frame you trade is really up to personal choice according to your risk profile.
Most FX trading platforms allow you to look at tick, 1 minute, 5 minute, 10 minute, 1 hour, 1 day, 1 week date in real time. If you’re FX trading platform does not allow you to do this move to another one! The time frame you trade is really up to personal choice according to your risk profile.
Tick data is generally for really aggressive traders trading big volumes on special deals from operators allowing for low spreads (PIP Spread). Generally speaking movements in tick data are small in percentage terms, but there are more of them. Tick data is useful for identifying very short-term price movements. Even if you trade using less frequent data, tick data is useful for helping establish entry points. Experienced trader’s often use tick data by preference. If you are looking for a special deal with a trading platform to trade high volume on tick data contact us and we will organise one for you.
Medium term traders use 1 minute or 5 minute data. They are looking for rate moves greater than tick data traders but not as big as 1 day or 1 week traders. You will find the majority of FX traders tend to focus on this type of data. It is very useful for indentifying intermediate trends.
As you have probabily guessed by now, those trading 1 day or 1 week data are looking to capture major and significant trends and price movements. Often long term trend traders will use 1 minute or 5 minute data to help identify entry and exit points to optimise their entry point around their long term trend prediction.
Regular traders will switch between the different time intervals looking for strong patterns. Once you identify a profitable chart, it’s valid no matter what the time period is.
Trading shorter time intervals you will get more trades per currency (as more patters are formed). It’s important to recognise this. On the one hand, shorter time intervals are great as they provide more opportunities. On the other hand, the money invested and the total PIP count spread you pay will be more because you are making more trades. Generally speaking, higher investment is required in shorter term time intervals as FX providers will lower the spread you pay for higher investment amounts. This is critical for tick data as you are only looking for small price movements. For beginners I would recommend weekly, daily and 10 minute data. As you get more experienced you can move into shorter time intervals.
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