Skip to content Skip to sidebar Skip to footer

Learn Multiple Trading Timeframes for Better Trading Points

First of all, take a good look at what is happening on the market. Don’t get closer, get further away. Remember, a trend on a longer time frame has more time to develop, meaning it will take more effort to move the market for the pair to change course.

Also, support and resistance levels work more significantly on more extended time frames. Through that, you can plan your decision to go long or short based on the ranging or trending of the market. Then you can return to your preferred time frame, or even lower, by placing stop and profit targets to make tactical decisions about where to enter and exit.

You can zoom in to get a better view of the entry and exit points. By putting in the dimension of time to your analysis, you may get an edge over the tunnel vision traders, who trade off in only one time frame.

Perform Multiple Time Frame Analysis

Let’s say you like to trade with EUR/USD pair the most, and are comfortable at a 1-hour chart. The first thing you do is move up to check the 4-hour chart of EUR/USD, which will help to determine the overall trend. If the pair is in an uptrend, this should signal to only look for BUY signals.

Now zoom back at your preferred 1-hour time frame and spot her entry point. Here, you might see that a doji candlestick has formed and the stochastic has crossed over, out of oversold conditions!

To make sure you get a good entry point, scale down to a 15-minute chart to find better entry and confirmation. If the uptrend continues, you can confirm it’s a good time to buy.

There is a limit on the number of time frames you are allowed to study, you don’t want a screen full of charts that tell you different things. It is recommended you use at least two, but not more than three time frames. 

Post a Comment for "Learn Multiple Trading Timeframes for Better Trading Points"