Greeting guys.
What is s.o.p for multiple time frame analysis? Because I didn’t see the relationship between the higher timeframe and the lower timeframe. What do we need to observe actually?
Hope you guys can help to explain to me. Thank you. Have a nice day!
hi
relationship between the higher timeframe and the lower timeframe ? depends what kind of trade are you looking , for example many of my entries are based in 5 min /15 min tf, but my plan are based in dayly tf ,I only trade 2 or 3 hrs ny open session , as you can see I usually used 3 time frames
Azwn.
I use a high timeframe to look for strong trends- for example a 4hour or 8 hour frame may show that a particular pair has been trending down for a few weeks.
I then look at a lower time frame, 1 hour, to confirm this is still the case and that my pair has not started to change direction.
Finally I look at a lower time frame, 5 mins, to pinpoint my trade entry point.
The point at which you close a trade will depend on your trading style and strategy. Are you trading short or long term? Do you want out before upcoming high-impact news? How many other trades are open and what degree of risk will you take?
While there is no real limit as to how many frequencies can be monitored or which specific ones to choose, there are general guidelines that most practitioners will follow.
Solid Advice
Multiple time frame analysis is used predominantly in swing trading. As all time frames are fractal in nature, one can assume for instance the roll over (top or bottom) on the weekly for instance, presupposes the overall predominant direction on the daily.