what is noise in trading?

@emma_durban - 4 months ago - Forex Education

Traders often refer to noise on some timeframes of a trading chart and beginners get confused as to what candles actually constitute the noise when reading charts. So, I created this thread so we can discuss noise in trading, what it is and how to spot plus what do do to avoid it.

@headies25284 - 4 months ago

I’m interested in this thread and looking forward to learn from people’s responses

@robert_sondreli - 4 months ago

Noise shows up on your trading chart in the form of very small candles whose volumes are so low that they are irreevant to the overall market trend.

@yokoyi - 4 months ago

This is a very useful thread for both beginners and pro traders. For me, noise is not limited to small sized candles only. Noise is any candle that forms after a trend has started.

@yokoyi - 4 months ago

Look at the image I attached, when trading this chart, I will only focus on the useful candles which i encircled because they mark the begining of major trends.

@patrinova_athenia - 4 months ago

Noise on your chart refers to those candles that do not hold enough information to matter. For example if you are trading on a one-minute time frame how much useful information can a one-minute candle give you? When you trade on a noisy chart, the tendency for losses is higher because you will see what looks like a buy candlestick pattern only for price to start falling after you enter the trade. But noise exists on all timeframes, just that it is more prevalent on smaller timeframes.