Hey hey: what's up my friends, so in today's episode, it's all about the one hour time frame baby, so i want to share with you uh a few truths about the one-hour time frame that you might not be aware of. So so, let's talk about a one-hour timeframe. This is definitely right. One of the most popular time frames among traders, because uh, especially for forex right, if you you know, install mt4 trading view or whatsoever.

The one hour time frame is like one of the default time frame that you know comes with the software package so and also right, the one hour time frame. It's it's fast enough right to give you enough action right and at the same time, not too fast to the point where you're you know, scalping the markets in and out, you know, making you know, reckless decisions. So the one hour time frame, kind of like give you a little bit of breathing room right to plan and you know uh execute your trades, but still right. There are a few things that you must be aware of right when you are trading the one-hour time frame.

So let's get started first thing: first, number one! If you are trading on the one-hour time frame, you must expect right that you're holding time period or the trade duration right might last up to one day two days or even three days. Why is that so? Here's the thing yes, you're entering your trades on a one-hour time frame but, as you know, right, let's say, for example, you buy at support and look to sell at resistance. You don't just buy and support on the one hour, time frame and the next hour boom. The price hits resistance.

Yes, you could have that scenario, but more often than not right you buy support the market needs time right for it to reach your target right, maybe three or four candles later that will translate into three or four hours later. But what? If there are times you buy into support and market consolidate range, go against, you play your feelings, play your emotions and then finally reach your target and by the time that happens, that's like after 30 or 40 candles. So you can see that you're holding time right. If you enter on a one hour, time frame be prepared to hold your trades for even a day or two all right.

That is highly possible number two. If you are trading on a one hour time frame right, then what is a time frame? That's relevant to you, let's say uh for doing multiple time frame analysis. Let's say if you want to reference the higher time frame. What is a time frame, that's relevant to you on the one hour time frame.

So if you have studied the earlier episodes that we discussed the multiple time frame cheat sheet, we use something called a factor of four to six: a technique. I learned from adam crimes and alexander elder, so how this works is that if you are entering your trades on the one hour time frame, then you apply a factor of either four to six right. Your higher time frame will be anywhere between the four hour time frame to the six hour timeframe, so it could be the four hour time frame the five hour time frame or the six hour time frame. So anyway, you kind of you know, decide it's up to you right, but that is just kind of a range of a time frame that you can consider to use for your higher time frame.

Analysis. So clearly, in this case right, if you're entering your trades on a one hour, time frame the weekly time frame, the monthly timeframe, the quarterly timeframe - i would say those are kind of irrelevant right to your trading. Okay. So that's the second thing.

The third thing: if you enter trades on a one-hour timeframe, then yes, the news matters right. I'm not saying the news matters in the sense that you need to trade, the news, but rather, if you're entering - and you know managing your trades on one hour time frame, then when the news release occurs right, the spike right could be large enough right to stop. You out of a trade. So if you are a one-hour timeframe trader, you must be aware of news release, because any sudden news release right and chances are your trade will could get stopped out.

So a few things you can do number one. If you know there's an important news release coming up that is pertaining to the markets, you're trading, then you can just build out of the trade and you know not get you know involved in the news. Second thing you can do, is you know, maybe you know manage your risk, reduce your position size. So if, let's say you have one lot on euro dollar, you might look to sell half a lot and just have you know half a lot remaining.

So those are a couple of things you can consider right when there's a high impact news coming up. Okay. Fourth thing: if you trade on a one hour time frame right, not all markets are suitable, so first thing: first forex markets, i would say most major uh and cross currency pairs. It's suitable to trade, the one hour time frame, because you know they are liquid.

You can pretty much enter your trades exit them relatively easy, but if you trade, exotic pairs like let's say, dollar against the south african rent dollar against the indian rupee, the spread can be pretty large. And if you were to trade a one-hour time frame right, you will your trade right, a huge percentage of the profit right will go to paying the spread, so i won't really recommend that so be aware of. You know exotic currency pairs right when you're trading the one-hour time frame, especially when the spread is pretty wide. Another thing is that if you trade stocks right, i would say liquid stocks right large cap stocks, one hour time frame no problem.

But if you were to trade again, like you know, like penny stocks or illiquid stocks for one hour time again right, you might not make sense out of it, because there is not enough liquidity right to have uh charts right. That looks. You know tradable okay, so so i would say generally highly liquid stocks most fx pairs, one hour time frame can be applied, but at the same time there are markets out there that the one hour time frame won't make sense so be aware of it. And finally, the one hour time frame, who is it for i mean? Is it suitable for you to? You know trade? So let me share with you uh who it's for and who it's not for so, first and foremost, if you are having a full-time job, the one-hour time frame.

Clearly, it's not suitable for you, because every candle right you get a new uh candle being painted and if you're a job right, i don't think you can check the charts every single hour, okay, so for those with a full-time job, i would say this time frame Is pretty much too fast for you, but at the same time, right, if you are someone who, let's say you're a day trader and and you want more trading opportunities that doesn't require as much screen time as day trading, then you can consider the one hour time Frame, maybe a longer term swing trading approach relative to your day, trading, endeavor or maybe, if you're a student right. You are studying full time and if you know pockets of free time available, one hour time frame might be suitable for you as well. So and maybe you have a part-time job right and again, you have, you know again pockets of free time. One hour time frame might be suitable for you as well, okay.

So these are the few things like to consider when you are about to embark right on trading the one hour time frame. So it's a quick recap right: let's, let's do this right number one! If you trade on a one hour time frame, be prepared right for your holding time period to be anywhere between a few hours to even a few days number two uh. If you trade, the one hour time frame, your higher time frame can be anywhere between the four and six hour time frame. Number three: the news matters right, because when a sudden news release comes out right and on your one-hour charts, it could just look out of work right, huge spike up and down so be aware of news number.

Four most markets are suitable for the one-hour time frame, especially liquids market, liquid stock markets, uh fx markets, but be aware of certain exotic currency pairs, and you know less liquid stocks and finally, number five. The one hour time frame is suitable for those of you who are maybe studying uh working part time or maybe you know, you're a day trader and one more trading opportunities. One hour time frame is suitable for you, but if you have a full time job, then one hour time frame is probably not for you, okay, so with that said, i wish you good luck and good trading. I will talk to you soon.

You.