Which time period I use ?

Amazing Forex Strategy allways attcah timeframes of the data in
the chart, i.e, hourly,daily,weekly,monthly,etc as the basic princiles
of technical analysis. And now when you are about to trade which
one do you use to determine trend ? Winning opportunities exist

in any time frame but we must customize settings of technical
analysis for each time period.

On weekly chart, the scale interval on the time axis is one week.
On the monthly chart, corresponingly every bar shows price action
for one complete month.

It is obvious that in order to cover a longer period of time and to be
able to analyze long-term trends, we have to compress the price
behavior.

Weekly chart, for example, can determine a period of five years and
more, the monthly chart can determine twenty years or more. This is
how we can manage to see far ahead of her-/himself and that is how
she/he can assess the market in terms of the long-term opportunities,
which are really valuable while using or applying technical analysis.

Studying price chart very important for deep analysis and It is wise
to start by analyzing long-term charts and then move slowly to
short-term charts. There is less "noise" on the long periods, that is
why graphic models, basic trend lines
and different levels of support or resistance are seen more clearly.

If we start studying short-term market, later on, as the volume of
analyzed data expands, we will have to reconsider the conclusions
several times at least. In the long run, short-term results may even
change completely after long-term charts have been studied.

If we want to analyze longer periods first, we can establish where
the market is in terms of a long-term perspective. After that,
we could then turn to chart studies which cover shorter periods
of time. That is how profesional traders go from "macro" to "micro"
analysis. At the final stage of the analysis, we determine the point
of "entry into the market", i.e., the point of opening a position.

The shorter the last analysis stage is, the more precisely one can
determine this entrance point.

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