What is a non-standard or custom timeframe and how to use it?
When trading you use different timeframes of MetaTrader 4. The default timeframes in MetaTrader are M1, M5, M15, M30, H1, H4, D1, W1, and MN1. This means that you can use only these 9 timeframes as the default timeframe. These are also known as standard timeframes. Many people think sometimes if I could somehow see the chart using M10 or M20 or H2 timeframe at this moment, it would be very convenient for me! In fact, only those who are experienced in MetaTrader operations know how to use such custom timeframes. This type of custom timeframe is called a non-standard timeframe. Today I will show you how to use this kind of non-standard or custom timeframe. The matter is very simple. You will learn once you see the process. Below we will discuss step by step how to open a chart of non-standard or custom timeframes.
(1) Open your MetaTrader first.
(2) Make the running timeframe M1 of the pair you want to use non-standard timeframe. Suppose we want to use a custom timeframe for the EURUSD pair. Then take EURUSD M1.
(3) Now expand the box by clicking on the (+) button of the “Scripts” drop-down box from the left side Navigator panel.
(4) Now double click on the script called “PeriodConverter”. When the dialog box opens, click on the “Input” tab. Now enter your desired number in the “Period Multiplier Factor” field. Note that the number of minutes you want to use in the timeframe enters that number in this cell. Like you want to use a 10-minute timeframe. Then write 10 for this. If you want to use a 2-hour timeframe, find 2 hours like minutes. 60 * 2 = 120, i.e. write 120 in this cell. Enter the number and click Ok. Now the script will be inserted in the chart. If you right-click on the chart, you will see that the script is running. You must not remove it from the chart unless you use a custom timeframe. This script will analyze your current chart and convert it to your desired timeframe to create another new offline chart. Now we will find and open that offline chart.
(5) Now click on File -> Open Offline. The Open Offline Chart dialog box will open.
(6) Now find the EURUSD M10 chart from inside this dialog box and double click on it. Then the chart of your desired non-standard or custom timeframe will open.
Note that a chart with a non-standard or custom timeframe is an offline chart. It cannot receive tick data directly from the market. But the script that you ran in the aforesaid chart continues to send history and tick data from its original chart to this chart with each new tick data. So the movement of non-standard charts can be seen in the same way as live charts.
Hopefully, this post will be instructive for those who want to do chart analysis in custom timeframes.
Head and Shoulders Pattern: The Trend Reversal Spotter: Forex trading price charts are more complex than any other market. The prices get affected by several factors and are very sensitive. In this case, there is no certainty about the next turn, the forex market can take. But, there are tools and indicators in the currency trading market which can help. Head and Shoulders pattern is one of those patterns. It is not only reliable but also is known for its excellent accuracy in predicting the market trend. Its name is because of its shape on the chart and, today we’ll discuss the essential things related to it. In this article, we would first understand this technical trend indicator, its price movement on the chart, some crucial components, and lastly, some important go-to-points to remember. A conclusion would follow all this. Head and Shoulder Pattern in Forex Market Head and shoulders is a technical analysis pattern which helps the forex traders to determine the reverse up trends. The design includes three major peak lines, of which the ‘middle line’ is the highest trending one. The other two peak lines are somewhat at the same level. As unique as its name, the pattern forms the shape like of a ‘head’, ‘two shoulders’, and ‘one neckline’. Here, the head is the highest price line, shoulders are the other two lines, and the neckline is the support price line. In simple words, the head and shoulders pattern helps to identify an uptrend which has exhausted itself and is likely to reverse the trend. Moreover, this pattern is the most trustworthy and reliable, among forex traders, as it is one of the accurate technical indicators for spotting trend reversal. Just like Head and Shoulders, we have its brother too here! Inverse Head and Shoulder in Forex Market This indicator was developed after the original one and did the exact opposite work of its counterpart. The inverse head and shoulders pattern helps identify the end of a downtrend and inception of an uptrend of the currency price. It looks like an upside-down hanging ‘head’, ‘shoulder’, & ‘neckline’. Understanding the Pattern Movements Uptrend: It indicates that the price first rise to a certain higher level but declines back to the average level. After the fall, the currency price rises again and this time, above the previous high. Thus, forming the head of the pattern! However, the highest high line also declines and for one last time, the price line goes up and falls. After this fall, the downtrend has begun. Once the trader confirms this pattern, he should go short or sell the currency, as soon as possible. Downtrend: The movement of the price line is the same as above. But, this forms after a downtrend, while the above forms after an uptrend. Also, the end of this pattern marks the starting of a bull trend, here. Moreover, once this pattern fully forms, it should be accompanied by buying the currency, by the forex trader. Important: Other Components Apart from the main components, i.e. the head and the shoulders, there are some other points too. Volume: It is a vital component of this pattern. Usually, the Volume should increase when the price line of the last Shoulder is declining. Also, the Volume during the starting of the first Shoulder should be more than the inception of the head. Neckline: It is the line formed by using the low points of the head, i.e. one point is at the end of the first Shoulder, and second is at the starting of the Right Shoulder. The slope of the neckline also plays a significant role here. The downward moving slope signifies a more dull or bearish forex market. Price Target: It is anticipated or calculated next price at which the currency will stop after the fall or rise. It can also be identified using many other tools such as Fibonacci and moving averages. So, these were some essential components. Now, before moving further, you must read these critical points of the head and shoulders pattern, and then quickly end it, after a conclusive post. Points to Remember - The head and shoulders pattern does not apply to a stable forex market. The existence of an upward or downward trend is mandatory. - The left Shoulder must be above the average price trend line of the currency. - The right Shoulder must cross the neckline. Failure in it will nullify the pattern. - The support price level should turn into the resistance level for an uptrend head and shoulders pattern, and vice versa for the inverse model. So, this was all about the head and shoulders pattern. This famous technical indicator is quite tricky to spot. However, once spotted will benefit significantly. Moreover, it is essential to keep in mind that both the shoulders must not be completely identical; they would only show symmetry. Rounding Up Head and Shoulder pattern has not become the trader’s favourite without any reason. It has established itself! First, it is open to all time frames; it can apply to daily, weekly, monthly, or any other duration. Second, visually easy to spot; thus, any forex trader with little experience can use it. All this makes it the user’s dearest tool. However, it is always best to enter the forex market only when the shape forms and the neckline breaks. Indeed, no forex trading tool is perfect, but it is based upon some right logical price movements.
You need to be aware of currency co-relation when you trade in multiple currencies, the relation of one currency to another at different times of the year is different, the currency you found weak today may be strong for you at another time, so with multiple currencies Time is of the essence when it comes to trading. See how risky or profitable you are in the chart below for the same value of the same direction + and the opposite direction ... Keep in mind that when you trade two currencies with +1 in 1 volume, it means that you have basically started trading in 2 volumes. In this case, judge your risk ratio yourself. Again, trading -1 currency with two currencies at 1 volume means that one of your trades will be profitable and the other will go to trade loss. So before trading in multiple currencies, be sure to know the difference between + and - between your two or more currencies and how much risk you can take. The big problem for most of our traders is that when we open trades in one currency we do not remember or know the directions between the two currencies which make it appear that both currencies are profitable together, or both together at a loss or one loss at another profit = 0 EUR/USD GBP/USD Look at the relationship between the two EUR / USD and GBP / USD charts, when the chart is taken, their relationship is +0.83, so their movement is seen in almost the same direction. Will come in double loss or double minus. This time let's take a look at which currencies are in a positive direction and which currencies are in a negative direction. Positive: EUR/USD and GBP/USD EUR/USD and AUD/USD EUR/USD and NZD/USD USD/CHF and USD/JPY AUD/USD and NZD/USD Negative: EUR/USD and USD/CHF GBP/USD and USD/JPY USD/CAD and AUD/USD USD/JPY and AUD/USD
Are you currently having a bad time with your trading and not sure how to turn things around in your favor? Then these tips could be perfect for you to change your fortunes.As a fresh faced trader, things are bound to go bad from time to time. You could end up picking some dirty trading routines and easily suffer an extended losing streak. At this point, you begin to doubt your every move and might lose confidence in your abilities or decision-making. Hope and good fortune seem like tiny dots in the rear-view mirror.Fear not! We have 10 great tips to discuss with you that have been proven to help traders stuck in a bad spot. You can steer your trading in the right direction by implementing them. Trading is about playing the percentages, not guaranteesMany beginners enter trading only to end up being confused about what they are actually meant to do to end up as successful traders. You will have to change the way you approach and view the art of trading to boost your chances of success. Trading has never been about certainties or guarantees, it is all about trying to make the most out of constantly fluctuating probabilities. The only guarantee is that the market will keep changing.Despite this well known fact, traders make the dreadful mistake of being certain about the market’s future movement. As a trader, you should be following a strategy which could give you a slight, but vital, advantage in the market. A slight advantage means the chances of a certain event occurring being more than something else.What you need to understand is that the winners and losers after a series of trades is completely random for any particular strategy. This doesn’t mean that the market is unpredictable. If you are able to identify and act on a series of events with a high chance of occurring over a relatively long period of time, then you have a decent chance of being quite successful. Hence, it is important to forget about the trade you just made and treat your next one as a completely unrelated or fresh event. Keep your discipline and consistency for every new trade.Avoid trading too muchThis tip is extremely easy to preach and tough to practice. But if you are really keen on improving your trading fortune, then it is crucial to avoid trading excessively. In this context, over-trading refers to making trades in the absence of a logical trading strategy or advantage. Trading too much is an extremely easy habit to get into, but also very tough to recognize or realize it in your behavior. So stop trading too much, create a coherent trading plan and stick to it in a disciplined manner.Don’t pay attention to the newsTrying to watch the news and making connections in real-time is just a colossal waste of time and only ends up in making the entire trading process more complex. Turn off all the news and pretend to be deaf when the ‘pundits’ open their mouths. Trust your own gut rather than someone who doesn’t have a stake in your fortunes.Become an expert at placing stop lossesPlacing a stop loss at the right point is a crucial ability in trading as it can mean the difference between a profit or a loss. If you can become good at this, then it can help you stay in trades that would usually have stopped you out a lot earlier. Many traders make the rookie mistake of placing a stop loss a bit too close to the entry price. They might have done it to get a larger position size only to find out that it is a mistake for being too greedy. They end up making too many losses which are otherwise avoidable. Learn how to place stop losses based on price action analysis and the structure of the market to be successful.Understand the concept of sizing up a positionHaving the knowledge of properly sizing up trades is vital to make fundamentally sound decisions. This knowledge removes any avoidable mistakes and makes things easier for you in the long run.If you’re on a losing run, take a break from tradingAt some point, you will have to just swallow your pride and take responsibility for your errors. A bad losing streak can make a trader feel lost, resentful and maybe even angry. Such emotions can only be harmful and it is best if you just take a break from trading for some time. There is no use trying to row a sinking ship.As soon as you take a break from trading with real money, you begin to look back over your decisions with more clarity and objectivity. Your past mistakes will stick out like a sore thumb. It is important to get away from the hustle-bustle and clear your head to understand whatever you are doing wrong.Lower your riskIf you are making mistakes in numerous trades while making losses, the wisest move for you is to lower the money you risk in each and every trade. Such a move will safeguard your trading account and gradually clear your mind from distractions like avoidable losses that are tough to handle.Avoid peeking at the intra-day charts constantlyIt is generally accepted that the daily chart and higher time frame trading charts are far more useful for traders who are struggling. Once you get your groove back, you can gradually take a few more peeks at the intraday chart.Understand price actionThis is one of the absolute fundamentals when it comes to trading. You will have a very bad time if you trade without having the capability to understand a price chart. This holds true even if price action is not your default analysis method. Understanding price charts will end up improving your trading efficiency swiftly. Make things a little bit easier for yourself.Narrow down your trading strategyTraders look up on the internet for ‘cutting-edge’ or ‘guaranteed success’ trading methods all the time. They tend to be inconsistent and find it tough to focus on one particular strategy. This inevitably leads to confusion and lack of a coherent strategy as the ‘noise’ stops you from implementing your philosophy. You have to make up your mind as to what kind of trader you are or what you want to be.Once you gain that clarity, trading will quickly feel like a skilled profession rather than a bunch of gambling sessions. After all, a skilled profession requires discipline, education and hard work for a successful career.