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  Multiple Forex Time Frames Is Best  
 
When it comes to trading Forex, it is important to know when to get your information. The most common time frames for investing in the Forex market are five minutes, one hour and daily. However, most people think that they should only choose one time frame and then use that information to make all of their decisions. That could be a costly mistake for anyone who is investing in Forex, though.

Many new Forex traders believe that trading in one time frame is the route to go. They have or develop an approach around that time frame and then they jump right in and start testing out their knowledge and skills around that approach. Even though they work hard and do make some progress, they may even stick to their approach perfectly; they eventually find out that the results are too random. For many beginning Forex investors with such an approach, their frustrations elevate as they notice that sometimes their time frame plan works perfectly and then in other times it hurts them incredibly. This happens even when the conditions are virtually the same. What is happening here?

There could be many reasons that this is occurring, however it is most common that the problem is that you just do not have enough attention paid to the big picture. In other words, you may know what is happening within one time frame, and know it well, but you may not know what is happening outside of that one time frame. That could equate to substantial problems for you and your Forex strategy.

A good thing to consider is the importance of the data based on the time frame. For example, the one-minute time frame really is the very least amount of information and it is not going to be important to you in the grand scheme. The five-minute time frame is slightly better but not as good as the one hour, and so on. The daily time frame is better than the one hour but not as good as the weekly, and so on.

So, what does this mean to your particular trading method? In short, you need to focus on the time frame you have shown, but you also need to look at the big picture as well. You may not have the most in depth understanding of the larger picture, but you should scan over the larger time frames to get an idea of what is happening.