Written by Dean Kleb

What is the right time frame for you? Well, it all depends on your personality. You have to feel comfortable with the time frames you are trading in.

Ask yourself the following question: Are you a scalping, short, swing, position or long-term currency trader? How many hours you want to dedicate to forex trading? You have to find out before you can choose the right timeframe to trade from.

Intraday Timeframes

Scalpers — The scalper profits from small currency price changes holding positions just for seconds or minutes. They repeatedly buy and sell several times a day, usually in larger lot sizes but with small profit margins. the typical objective for a scalp trade is 4-15 pips. They usually love trading key economic data releases to make quick profits from it.

Preferred time frames for scalpers are 1 min, 5 min and 15 min chart.

Daytraders — The currency day trader buys and sells positions throughout the day, profiting from short-term trends, the typical objective for a day trade is 15-100 pips. Day traders tend to be range traders, buying a currency pair low and selling high. Most online currency traders are day traders. They usually use technical analysis to make trading decisions.

Preferred timeframes for day traders are 5 min, 15 min and 60 min chart.

Swing or Position Timeframes

Swing traders — Swingtraders are trying to buy low and sell high, the main difference between swing — and daytraders is the length in holding the open position, typically, swing traders will hold their open position(s) 2-5days. They usually use technical analysis to make trading decisions.

Preferred timeframes for swingtraders are 60 min, 240 min chart and daily chart.

Position traders — The main difference between a position — and swing trader is that position traders will normally have a longer time horizon than swing traders for holding a position in a currency pair, typically, position traders will hold their open position(s) 5-50days. They usually use both fundamental and technical analysis to make trading decisions.

Preferred timeframes for position traders are 60 min, 240 min chart and daily chart and weekly chart.

Long — Term Timeframes

Long-term traders — Long term currency traders usually hold positions for month or even years profiting from a long term trend. They usually use both fundamental and technical analysis to make trading decisions.

Preferred timeframes for long-term currency traders are daily chart and weekly chart.

Picking the Right Timeframe

Below table might help you in choosing the right timeframe.