Introducing Foreign Exchange chart reading. The Forex market is fun, fast and open 24 hours a day–trading begins Sunday at 5pm EST and closes Friday 4pm EST. Since trading is continuous there are many different chart times to choose from. The Monthly, Weekly, Daily, 4-hour, 2-hour, 1-hour, 30-minute. There are smaller time frames than the 30-minute chart, but I do not use them, anymore.
With so many time chart options to choose from which one is the best or ideal to use? The answer, like all things, depends. It depends on what type of trader I want to be? What type of trades you want to make. But, whichever I choose I must remain consistent. That is, if I choose to enter a trade on a 1 hour chart then my stops and profits must be determined from this time frame as well. It would be inconsistent to have my trade determined on the 1-hour chart and then use the 4-hour chart to determine exits.
The chart time frame selection must be aligned with my trading plan. They are related and therefore the two must be consistent with each other.