Forex Trading Time Interval Strategy

Forex Trading Time Interval Strategy

Submitted by adil on Tue, 05/06/2014 - 18:19

Forex trading is a continuous trading zone irrespective of Breaks and Offs. Trading concepts and strategies keep on changing and developing with the change of trading trends and concepts of traders.

Yet after so many years, one of the most effective strategies in Forex trading is “Time Interval Strategy”.

• Every day, trading in number of currency pairs starts with predefined figures but alters the trend just after the proceeding until at the end of the day.
• Throughout the day, number of factors affects trading in different time intervals. Means some of the pairs in trading suddenly boost up within 30 minutes-120 minutes. Some face resistance within same period after 150 minutes alter the course. In worse case, specific pairs face resistance and devaluation through the day

It is common practice and trend that after certain time interval, trading changes the paths and in most cases, it repeats itself. For example;

If USD/Euro has inclined in trading at the start of the day and continued to act same for almost 130 minutes, mean while USD/Euro has reluctant the risks and resistance, then this inclination and booming of USD/Euro may repeat after certain time. It is very rare that a single account keep moving upward without any pause or downfall. Rumors and other competitor’s strategies play role in long run. In other case, if USD/Euro declines for some amount then most probably this trend will repeat after 250 minutes. Therefore, trading periods should be of small periods.

Now after tracing the most certain patterns of Forex trading mark the time intervals and invest in certain currency or pair of currencies. Let suppose you have marked 130 minutes to 190 minutes of active trading and currency in which you have invested is USD/Euro. Now start your trading at 130 minutes of Forex trading and extract the investment after 190 minutes, just as per your motive and mark.

• Single period marking throughout the day as per “Time Interval Strategy of Forex Trading” would not serve your cause because risk is still there.
• Now mark another time interval according to analysis in which you have found the firm trading. After closing first time interval trade, initiate your second trade in your second period. Let suppose, second set time interval is 260 mins-320 minutes. Now according to “Time Interval Strategy of Forex Trading”, risk has been minimized and two-sorted trading period would definitely have more chances of profitability then the whole time trading. Risk is involved in long time trading in Forex market.

Investors and brokers aim to count the risk before investment is purely served by this “Time Interval Strategy of Forex Trading”. Single time interval sorting may offer some very low minimization of risk but multiple periods within a single account, currency or pair of currencies, not only decrease the risk to a considerable level but also excel the probability of profit. Multiple investments in more than one account in number of allocated time intervals and the investment in multiple accounts and currencies definitely enhances the profitability.