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If you tend to stick with the usual common timeframes such as the 5-minute, 15-minute or 1-hour time frame etc. then let me share with you something interesting I happen to come across in my trading testing lab whilst testing an uncommon timeframe, the 3-minute time frame.
Take a look at this chart of a 5-minute chart of XAUUSD, on May 22 2023.
As you can see screenshot below, the price action of XAUUSD going down slowly, that was from around 19.30, 22nd May 2023.
Now take a look at this 3-minute time frame, during the same time period….
As you can see in the 3-minute time frame a Sell signal was printed from one of the indicators I use, called Q-Trend.
If we would’ve taken that signal, the trade would’ve rewarded us with a potential risk/reward of 1:4!
To put it in terms of money, if my math is right, we would risk $3 and make a $12 profit at a 0.01 micro lot.
Now obviously it all depends on what your style of trading is, for example, some Traders prefer higher time frames as it fits their particular strategy, i.e., swing trading.
But I’m just saying there are some potential opportunities available to catch big moves on smaller times such as the 3-minute time frame.
This may interest the scalpers but there are some buy-sell indicators that you can adjust to reduce the frequency of the signals on lower time frames, such as the Q Trend allows.
This means that you can have the opportunity to catch some profitable moves, on a scalping time frame but without having to be glued to the screen constantly and kind of benefit from some scalping strategies and ride on to big moves early on.
Here’s the link to the Q-Trend buy/sell indicator, which is quite good and free:-)…