when you track a currency price such as euro or dollar, the aim is to know if it will be raised or fall.
So, you will decide if you will buy or sell the currency, this is called “time frame”.
Time frame in forex
To do that, you should know how much was the currency price an hour ago,
and how much was it three or four or five hours ago.
If you find that the currency is raised, it is best for you to buy the currency in the current time,
because its price is rising hour after hour, Vice versa.
So, when you track currency price motion hour after hour, time frame is with hour and is called hourly frame.
If you track currency price motion the previous day or its price 2, 3 or 4 days ago,
and you found that currency price motion was raising, it is best for you to buy this currency,
this frame is with a day and is called daily frame.
You can examine currency price motion at any time you want,
you should know that a dealer can examine currency price motion according to the following basis:
minute: you can know how much currency price was a minute ago or few minutes ago.
quarter: you can know how much currency price was a quarter ago, or four quarters ago.
hour: you can know how much currency price was an hour ago, or few hours ago.
day: you can know how much currency price was a day ago, or many days ago.
Some dealers examine currency price motion every 5 minutes or 10 minutes.
As a result, you can know price motion for any currency at any period you want.
if you want to examine euro/ dollar price motion, you should open your chart package software,
choose euro chart, and choose examining euro price motion according to an hourly frame. As a result,
you will know how much euro price was an hour or many hours ago.
There are some notes for using time frame
The smallest is the time frame size; the more will be a less confidence in it, vice versa.
When using small time frames such as 5 minutes, a quarter, half hour frames,
you will need to examine market label, there will be changes in price motion every moment.
While, using average frames such as every 4 quarters, or large frames as daily frame,
you will not need to examine market label, it will be enough to examine market just every 4 hours or every day.
Most strategies determine target size or stop size according to used time frame.
the more the frame is small, the more the target size or frame will be small, vice versa.
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