How do you trade Forex well in a shorter time frame?

Taking a trade that only looks good on a lower time frame if the bigger pictures are telling Finding a different story on consistency between time frames helps validate any setups I see Forming an interest in conditions on longer charts helps make sure you don’t miss anything important happening when… Higher levels and getting confirmation across periods help reduce the chances of suffering loss through temporary moves on a single scale. 

How do you trade Forex well in a shorter time frame?

When you’re analyzing market structure, it can be easy to overanalyze and be unsure about the exact highs and lows that matter too much. Guessing leaves things open to error, so I like the idea of having a specific method using the 50% Fibonacci retracement to determine what fluctuations are or are not significant. Enough to be considered significant turning points if the move retreats by less than 50% of the previous swing. 

I will ignore it as just noise and not a meaningful high or low cycle but anything that moves at least 50% constitutes a valid reversal in my view, focusing only on solid waves that create appropriate support and resistance levels within 50% or deeper pullbacks, and should This results in cleaner structural analysis, as it avoids getting hung up on small, irrelevant movements in the short term. 

Using the Fee Rule in Forex Trading

To me, using the 50% fee rule seems like a wise way to analyze market structure without a lot of personal guesswork. If you are trading ICT concepts, you might combine this rule with discount and premium zones, it is a basic idea where you draw a Fibonacci retracement between a major high and low using only the 50% level. 

This horizontal line then divides the previous movement into two parts, the upper half above 50% is when the price is considered to be at a premium which means closer to the top of its recent range while below 50% puts it in the discount zone near the loss, the midpoint helps determine the fair value level. The theory underlies this swing and gives you specific areas to think about entries and exits. The strategy involves selling when the market reaches premium prices towards the higher zone.

Maintain consistent trading in Forex

And looking to buy dips into the discount zone below the center line is when they are closer to the lows of the recent trading range, so keeping trades consistent with this dynamic distinct discount can help add an extra edge above the pure trend now that trending markets can continue to rise or Down Forever Sometimes you start to see momentum dry up as smart money takes profits or new information impacts the market when we are in a clear uptrend.

It is important to recognize signs that may change character, one hint is if prices failed in the last high, rising resistance appears stronger now, another sign is when support levels are retested but with the price keeping right above the last swing low, both signals tell me Knowing that we can move from a trend phase to more consolidation, I would love to see a sideways trend forming range in the context of the overall cycle trend. 

Analyze how far each new high or low extends after a Forex market swing

So until the last meaningful low breaks lower in this time frame, the bias is still bullish, paying attention to these shifts will help you adjust your structure analysis and your expectations of what the market looks like to trigger something that gives context to fundamental strength is to analyze how far each new high or low extends. Until after the last swing. 

They are cycles that grow in size over time so if we have reached a sideways period now if we look back we can measure the height of the previous last wave compared to the previous one and in this case, the last higher wave was created at a greater distance compared to the previous one when each new swing is bigger Of the latter that travels a greater distance tells me the dominant buyers or sellers show more momentum each cycle. 

Amplified waves in the Forex market

They indicate that the imbalance between supply and demand is increasing with each wave, so seeing gradually enlarging waves is a signal to me that the cycle still favors the direction of the trend even if we enter a consolidation phase. This is why we pay attention to how far price waves extend. It can provide context. Beyond just looking at time frame patterns alone. 

It’s not just about how long a new high or low extends, but also how quickly it gets there, whether the wave is fast and impulsive or long and extended. When analyzing market structure, one aspect I try to determine is how many candles it took to move between swing points, and the path appears to be faster which sets new stronger price levels for me. 

Use fewer candlestick charts in Forex

In this case, you can see that the most recent low was made more quickly than the one before it using fewer candles which tells me that the sellers have increased their strength bringing the price down and seeing new highs made more quickly with less time spent consolidating reinforces the validity of Basic cycle, It is very important to pay attention to both distance and speed. 

This provides more context, beyond just structuring the levels together, it helps paint a picture of the relative health of the cycle and works to maintain momentum There is not one tool I have found useful that is drawing a trend-based Fibonacci extension between the major highs and lows of the cycle specifically, it Connects the lowest point to the highest point and lowest point of any dip in between for the current leg up. 

Summary

The goal is to look for an even level with a greater return on the trade, in this case, once the price approaches the expected figure of 100%, buyers appear to have started cashing out their profits resulting in a bounce, so this tool is a useful reference for an exit strategy, and extensions based on Trend is a tool that should be used in analyzing your market structure, they objectively point out potential obstacles to the price as the market develops cycle after cycle.