Yes actually all timeframe is important because provided information on certain time frame, but as trader also need adjusted style trading that wil to implemented in the market, swing trader use four hour timeframe and hourly timefrae is good already, but position trader might weekly and daily is preferable, and scalping usually use five minute timefarme.
Absolutely not, because multiple time frame analysis gives us overall situation of a currency pairs and we can set short term as well as long term targets and get benefit from all market moves.
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Here is a daily chart as of yesterday for the EJ. The question I ask for today when I look at it is: what is todays likely direction? Yesterday was a push up into supply (I won’t start with the order block stuff here) and because of the structure of the market, and the way I read Mondays price action (across the Euro and British pairs), I think a bearish day today was a 75% likelihood.
2015-12-29_1131 - Hogarste’s library
So today, price opened and raided the stops above 132.25 to gather liquidity and dropped down to take out the low at 131.50. There was a very logical 20 pip range for entry between 132.25-132.45, with a minimum expectation of 3-1 reward to risk. I only list this as an example of how I look at multiple time frames.
2015-12-29_1144 - Hogarste’s library
It is very logical to ask ‘what will tomorrows candle look like based on today’s price action.’ I really do agree when people say that it’s much easier to trade with the direction of the daily bias then against it, and this is a really easy way to look at it. If you look at todays PA on a 1HR chart, price raided stops and very cleanly went into the supply area.
Use a higher time frame to see the general direction of the price. Use smaller time frame for entry point.
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There is nothing wrong with using multiple time frames if you have created strategy which is working that way, if you don’t know is it working than you should test it.
By the way I want to recommend you to use longer time frames since you don’t have lot of trading time.
Hi, how can I find an exit point using multiple time frame analysis? Thank you
Hi,
Finding an exit using MTF analysis is as follows: If you have a certain strategy which you exit on the 1 hour chart at a certain point, if the same strategy appears on a higher time frame, eg. the 4 hour, then enter as per your rules using the 1 hour chart and exit as per your rules but the target should be on the 4 hour Chart.
I think it is good to see multiple time frames. To get strong analysis of market thee time frames will help a trader. If they stuck just on one time frame they can not watch what is in bigger timeframe. I go to low and high time frames to confirm my analysis then go for further trading.
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It depends on your trading system; but in my live trading I use 2 time frames in a time (daily & h1).
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Please I need someone to help me, I spent a time and times trading with my demo account, trying on all strategies that. I’ve studied at babypips, but till now many among my trades it fail, now I don’t know what can I do, please I need your advice. Thank you
Nothing is wrong or right until, you are only facing loss with your system. If you have getting profit then you can use any numbers of indicators or time frame.
How many months you have been trading demo? By the way, it takes time to build a good trading system; so don’t lose your momentum. You can test your strategies by many parameters according to your plan; then judge your strategy based on your trading experience.
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About five months, so how can I test my strategy? And I wanted to trade with price action, but I m failing
You can use back testing; it will help you to make lots of trade within very short period of time. Price action is a good strategy; but don’t concentrate on only pattern based trading; try to focus on full context.
Is there any cost to use back test method?
On mt4, it’s free! You can watch YouTube tutorials. Hope this help.
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I have a question related to this; when changing time frames, should you also adjust your indicator parameters. how do you know which indicator parameters are good for which time frame. if i am using the stochastic with default values on a 1hr chart, will those values still be reliable when i move to a 5min. chart to find an entry?
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The minimum risk to reward ratio I use is 1:1.5 R. This means that my target has to be
a minimum of 1.5 times the size of my stop.
If my stop is 100 pips, the minimum size of my target is 150 pips (1.5 x 100).
If my stop is 75 pips, the minimum size of my target is 112.5 pips (1.5 x 75).
If there is a major barrier like the next support and resistance area in the way of my
minimum target I skip the trade, how can I know more about REWARD RISK RATIO? Thank you
For Me when I say reward to risk, I specifically mean I can only risk a certain amount of money. Eg. only 5% of my account. If 5% of my account is $100 than the value of my stop loss must not exceed $100. If I want to use a 200 pip stop loss then I will have to divide the $100 by 200 pips in order to get the Lot size that I will use for the trade. This is my version of Reward to Risk, I hope it helps you.
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Thank you for your help