The chart’s timeframe can be changed to different time periods using the chart toolbar that reads M1…MN. This toolbar appears right above the chart where you can select the following different time periods for the chart:
- M1 – One Minute
- M3 – Three Minutes
- M5 – Five Minutes
- M15 – Fifteen Minutes
- M30 – Thirty Minute
- H1 – One Hour
- H4 – Four Hours
- D1 – One Day
- W1 – One week
- M1 – One Month
If you select M1 for example, each bar will represent 1 minute. If you select M5, each bar will represent 5 minutes and so on and so forth.
When you start with a new Metatrader 4 Platform we suggest that you perform a chart data update for the currency pair you are analyzing. This will be beneficial when using indicators and expert advisors and can be done fairly easily. Once your chart is selected click on each time frame in the periodicity bar. You may see a quick “waiting for update” on your chart screen. This means that the chart is being updated. It is that simple.
Pros: More trade opportunities by only needing to hold a trade a short term. You also won’t be holding trades over night and have the fees and possible reverses when you are not watching.
Cons: You can’t really employ a strategy as the moves happen too fast for analysis and set ups. The trades are small and more numerous, so your fees will be higher due to frequent trading. Moves happen so fast it can be easy to get stopped out by spikes and small reversals. The trading will be intense due to quick short moves and the need to have amazing timing.
Median time frames
Pros: You will be able to use solid trading methods and have time to analyze the trades. You will still have opportunities for multiple trades within a day. Moves are slower and you can usually see reversals or stalls and have time to react intelligently.
Cons: You will still have more trading fees because of frequent transactions. Your entry and exits may not be as precise.
Long-term time frames
Pros: The chance to look at longer term trends and make larger amounts of pips. Less likely to get stopped out because of reversals or sudden market changes. You have more time to watch the trade and make wise, less emotionally driven decisions. Not as many trades made, so you will have less transaction costs.
Cons: There will be less trading opportunities. Trades will be held overnight so you are subject to those fees. With less trading opportunities you need to make sure your system works really well on the longer time frame, as you will naturally get fewer setups while swing trading.