When trading in Singapore Forex market it is recommended to chose a specific time frame of the chart and stick to it. Professional Singapore traders use the time frames of 4 hours, 24 hours or 1 week. There are certain advantages and disadvantages for the high time frames. The bigger is your time frame, the higher margin each position requires. But at the same moment you have the opportunity to make higher profits. The market’s behavior is more stable for bigger time frames but it may take you loner to find a good opportunity to enter the market. In this article we would like to discuss the strategy of trading in 4 hours time frame using the candle stick charts that can be found at any Singapore broker.
Be prepared that trading with 4 hours candle stick charts requires much patience and time. It may take you few days to find a good opportunity to enter the market and also from 12 hours to 5 days to stay in the market. This strategy is based on the trends that sometimes appear in the Singapore Forex market. The goal is to enter the market in the beginning of the trend and leave it in the end of the trend. According to the strategy a trader must check the market and his open positions every 4 hours after the last candle in the 4 hours chart is completed.
While analyzing the market it is recommended to check the graphs for the certain currency pairs for 4-5 days before on a 4 hours candle stick chart in order to see if there were some trends before or there is a situation for a potential good downward or upward trend coming. The decision of opening or closing a trading position may be taken only every 4 hours when the last candle is completed and a new one has started.
If you see that the last three cancels show that the market is going up, this is a good signal to open a buy position. If at least 2 last candles go down, this is a situation for a potential downward trend and you can open a sell position. In order to minimize possible losses you can use such orders as take profit and stop loss. You can set the take profit order after 120 pips in case if the prices between the opening and closing of the market did not exceed 80 pips for the last 5 trading days. If the prices exceeded 80 pips for the last 5 days, you can set up the take profit order for 240 points.
We wish all Singapore traders good luck and invite them to share their feedbacks and experience of Forex trading in Singapore.