Hi Norm,
What's 'best' for one trade might be a disaster for another trader - and vice versa. At best, 'best' is subjective and tends to be dictated by each trader's objectives, trading style and the amount of time they are willing (or able) to spend glued to their computer screen. In other words, the
best person to answer your question is you!
Tim.
Hi Tim,
Apparently, there is more than simple subjectivity to the issue. Perhaps the simplest way to clarify it is this: One would never scalp in a flat range. The more volatility the better; and of course, one would only scalp in the lower time frames.
As for trading the daily, one very knowledgeable trader wrote the following: "The reason that many swing-traders and
long-term traders favor the time after the New York close for analysis and order entry is simply this: There is a major lull which occurs in the currency market between the New York close (5pm New York time) and the Tokyo open (6pm or 7pm New York time, depending on time of year). The lull in this time period is typically characterized by scant price movement, and very low trading volume. Prior to the New York close, many traders --- anticipating this lull --- unwind intraday positions taken during the trading day. This action tends to complete (or suspend) some of the price patterns developed during the London and New York sessions, making chart analysis after the New York close simpler, more stress-free, and more leisurely, than at other times of day."
So you see, there is objective logic to trading the lower time frames during volatile times, and the daily and above during the lulls - and you know what? I think I just answered my question, because the trader I just quoted said, "many swing-traders . . . trade after the New York close," and 8H and 12H frames are very popular with swing traders. Still clarifying my thinking: I suppose entering trades during lulls would also be advantageous for those trading the 4H for the same reason: analyzing the chart and planning the trade at leisure.
So thanks! And I hope this response is meaningful to you.
Any other thoughts from anybody?
Norm
