Which timeframe is the best to trade forex – illustrating EURCAD, GBPCAD and CADCHF
Many occasions, students asked: which timeframe (H1 or H4) is a better trigger?
Why is there a question on which timeframe is a better trigger?
– if trigger on H1, it is seen to be faster and thus might get a better price or have a tighter stop
– if trigger on H4, it is slower (in 75%) of the time, thus might not have a better price which might result in a wider stop loss
I have no best answer here. Sometimes when I trigger on H1, I don’t get a better price than a H4 trigger.
Sometimes when I trigger on H4, price travels too far away from trigger point resulting in a wide stop and I don’t get to open position.
However, I always insist on a few steps:
1. In a counter trend, always a H4 trigger
2. If a H4 trigger is just 1.5 hour away, then I will also do a H4 trigger. Example, if time now is 7.30pm, a H1 trigger is 8pm, while a H4 trigger is 9pm. Then I will always do a H4 trigger
3. If i’m so keen about a trade and MUST trade it, then 30% of position goes to H1 trigger, remaining to H4 trigger
4. All else fail, I will trigger on H1 then see that I’m wrong for the moment, chop my fingers and swear that I won’t do it the next time
Let me illustrate this on on EURCAD
If look left, the H4 trigger is important because 13685 was an immediate support 4 weeks ago. If triggered early, the only way is to keep stop loss tight and stringent.
CADCHF – this is clearer because there was a H4 trigger and also H4 is above F6. However, I want to emphasize. All my said levels are NOT Target Profit or Profit Target. They are just support or resistance levels