Hello guys. I am a newbie trader and this idea of multiple timeframe analysis has been somewhat difficult for me. I find it suits my strategy more if I trade in the 1hr timeframe only. Is it wrong or should I incorporate other timeframes like the 15min or the 4hr.
I think its confusing to trade 3 or more time-frames. The usual technique is to select your preferred trading time-frame according to your strategy and personal capabilities, then add a higher time-frame to check that your trade does not clash with any significant TA - for example going against the long-term trend, or buying just below resistance, or buying just before a bearish reversal pattern finishes setting up.
Its important to make sure that if you enter on the TA from a short time-frame, your stop-loss is also based on that time-frame.
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Don’t knock yourself,it’s all to do with getting use to chart reading.
Start with Daily as your “base” time frame .then the rest is choice really either way of Daily.When I first started I used 5 minutes mainly for closure but I prefere 10 mins these days .
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Thanks for the reply
As a computer programmer, I want to make a suggestion that is probably way out in left field a bit too much for most of you…
Technically, the Euro USD does not know what a 30 minute chart is and it does not know what a 1-hour chart is and it does not know what a 15 minute chart is.
The Euro USD only knows what the price is right now.
Enjoy.
Fair point ,take it or leave it
What the price is right now is because of order flow. Which can be accessed by referring to lower TFs and then gauging the effect - if any - on higher T/Fs.
I don’t know which platform you’re trading on, and I have only ever traded on metatrader, so I don’t know any other platforms just FYI.
If you are using metatrader, what I suggest on your desktop or laptop I would suggest that you open up a terminal a trading terminal and open up three charts and tile them vertically that way you’ll have three charts one on the left one in the middle one on the right… fiddle with them put one of them on 5 minutes put another one on 30 minutes put another one on an hour and that way you can visually look at all three time frames at the same time.
I’m pretty sure it should start making sense to you once you do that. What you really don’t want to do is to be trading on the one minute chart and this is an extreme example so let’s say you’re trading on the one minute chart and you’re selling scalping but you didn’t take the time to look at the daily or the weekly or the monthly to notice that it is shooting straight through the ceiling okay so that’s why you want to look at different time frames the smaller time frames don’t tell you what the overall trend is okay and if it’s in an overall trend shooting through the Stars and it’s up to you you really don’t want to sell in that situation not usually. Good luck
Nothing wrong. Use What works for you
I know traders that only use daily… and Also traders that use only 5 minute charts.
But traders do know.
Very informative. Thanks