Below is an analysis of the three types of time frames you can find when trading Forex. It will help you to better know which one to choose for trading:
Traders who work with long-term trades generally use 1 day or 1 week charts.
Weekly or monthly charts set the long-term outlook. 1-day charts assist you in placing entries.
Trading usually ranges from a few days, weeks, months or even years.
You don’t have to practically look at the charts during the day.
Fewer transactions mean fewer spreads payments.
Stops at a greater distance.
There are fewer good signs of entry so you have to wait and be very patient.
You need a relatively large account to be able to handle temporary losses and maintain an adequate margin level.
Short-term traders use hourly time frames and keep trades open for several hours, days or a few weeks.
More opportunities to open trades.
Less need to rely on fewer opportunities to make profits.
Transaction costs are higher because they are more frequent (there are more spreads).
The risk during the night becomes a factor to be taken into account.
Traders in this mode generally use minute charts.
Trades are held only for short periods of time of 1 hour or even less and are moved more out by market closings.
Many opportunities to open trades but requires more experience.
There is no risk during the night as positions are closed the same day.
More spreads to pay even though there are no swaps (fees charged for keeping positions open overnight).
Mentally it is more difficult, because of the frequency of operations.
Profits are limited by the need to close positions at the end of the day.
According to this information you have to try to decide which is the best time frame for your trades.
You should also consider the money you have available for your trading account. The short term allows you to make better use of the margin and have tighter stops. The long term requires larger accounts to be able to handle price swings without having to face losses or get out of the margin.
If you are just starting out, medium to long term time frames are more recommended. Forget for now about short term and intraday time frames where price behavior is much more complicated to predict and requires more experience and attention.
When you finally decide which period of time to work with, the fun begins. This is when you start looking at multiple graphs of different time frames to analyze the market.