Hey hey: what's up my friends, so in today's episode i want to talk about you know the truth about the daily time frame that you know. Nobody tells you so daily time frame right. It's a very popular trading time frame, and here are a few things that you must know number one. If you trade off the daily time frame, then your higher time frame you can reference the weekly time frame.

Why is that again? We discussed this concept before uh. The concept, or rather the uh factor, of four to six. So whenever you want to define your higher timeframe, you can use a factor of between four to six. So, for example, the daily time frame right uh.

One week you have five trading days. So that's a factor of five, so it meets our requirement of you know a factor between four to six again, a concept that i learned from adam grimes and alex and the elder. So if you trade off the daily time frame, you can reference the weekly time frame as your higher time frame. Number two.

If you trade off the daily time frame, you don't really have to get so worried about news release like you know, for example, nfp uh. Maybe you know retail sales and stuff like that, which you know a short term trader might be concerned with. Why is that? And the reason is because, if you trade off the daily time frame, then your stop loss, all right will be referenced on the daily charts. It doesn't make sense to be trading on a daily timeframe and then you have a 10 pip stop-loss.

I can almost assure you you can stop out of your trade okay. So if you trade on, let's say the four-hour time frame, then your stop-loss will be based on the forward time frame. If you trade off the daily timeframe, then your stop-loss is based on the daily time frame and, as you know, on a daily time frame, the range of the candles right between the highs and lows is much wider. For example, let's say euro dollar could be.

You know 80 pips, 90 pips a day on average right and, of course, on the five minutes time frame: euro dollar euro against the dollar. The range of the candle could be like you know, five pips or so so. Naturally, when you trade off the higher timeframe, you will have a larger stop loss and when you have a higher, or rather when you have a larger stop-loss right news event, don't matter as much, because even if there is a sudden spike in the uh news release, It would probably only be visible on the lower timeframe, like the 15 minutes timeframe, or maybe even a one-hour timeframe, but when you look at that on daily time frame, it's almost non, it's negligible, okay. So this is why, as a daily timeframe trader, your stop loss is wider and the news released.

It doesn't impact you as much. Of course, it could still have. You know impact when major major news release come out. Like you know the uh presidential election - or maybe you know the euro, you know unpack against itself against the swiss, franc and stuff like that.

Yes, news release can still matter, especially those really big explosive ones, but generally the normal news release. You can, you know just not be not to worry about it number three right, because you are a daily time frame trader. You can only put on a trade after you know, a candle has been formed and, as you know, right, one candle takes one day to form. So this means right.

You don't have to be glued to the screen. All the time you have freedom to do the things you love, because every day only one candle is being painted, unlike you know, like let's say a five minutes time frame where every five minutes a new candle is being painted, and you get a new piece of Information to to decide whether you want to place a trade or not so on the daily timeframe, you won't be glued to the screen and you have no freedoms to do the things you love or you know. Maybe even you know, work full-time elsewhere. Number four! When you trade off the daily time frame right, you can expect your holding time period to be anywhere between a few days to even a few weeks or even, if you're, a trend follower.

It could even last a few months, but i think generally for most of you watching this right, it's probably a few days to a few weeks right for a daily timeframe trader. So that's kind of like you know the expectations of you know how long your trade can last when you enter it on the daily time frame and number five right as a daily time frame trader. You know that every day only one candle is being painted. So if you think about this right, if you trade fx in a way you have like 24 hours to make a trading decision, i won't say a full 24 hours.

But you have more time to make your trading decision. You don't have to hurry and think. Oh man, should i enter that trade right now or should i know uh should i, you know, stay out of the markets. If you trade on the five minutes time frame, you can see that your your time window to make a decision is very small.

I think in seconds or sometimes the most one minute, but when you trade off the daily time frame right your time window to make a decision, i would say at least a few hours or so right. So so you can in a way for those of you who prefer more time to think logically, the daily timeframe gives you time right to make a logical trading decision. Okay, so who is the daily time frame for all right? So let me first and foremost tell you who it's not for it's, not for those traders who wants fast action in the market so to enter. You know, let's say you know five times ten times twenty times a day daily time frame.

Is it's not for you right? It's also not for you. If you are, you know, uh looking to uh be hired as a prop trader right because generally prop creators, they are, of a shorter term nature in trading trading of the lower time frame. Okay, also, i would say day trading, rather the daily time frame is suitable for those of you who have a full time. Job right, you can't commit to be watching the charts all day that time frame is suitable for you.

The daily time frame is also for you if you want to use trading right as a like, or rather you got to do part-time trading. Yes, the daily time frame you know, would also work for you. So with that said, let's do a super. Quick recap.

Number one right daily time frame right: you can reference the higher time frame as the weekly time frame. If you are entering on a daily timeframe, the higher timeframe can be the weekly charts number two. When you trade off the daily timeframe, the news event don't matter as much i wan na say you know don't matter at all, but i think that's a bit extreme, because some of you might need people what about the presidential election. What about a big news release? So i'll just say it doesn't matter as much number three.

When you trade off the daily timeframe, you don't have to be glued to the screen. All the time i would say you know you can really have you know time right to do other things that matter to you number four. When you enter off the daily timeframe, you can expect right to hold your trades from a few days to even a few weeks. For those you know longer term uh or rather trend follows.

It might even be a few months number five. You can make better trading decisions and, finally, number six right is pretty much for those of you who currently are working full-time and you don't want to trade part-time. The daily time frame is, you know, highly suitable for you as well. So with that said, i wish you good luck and good trading.

I will talk to you soon. You.