Time frame analysis and placing of trade

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi
Am new in forex , if u make analysis using let’s say 30Min time frame n use that information to place a trade under 1hr or 15min…will the trade go the same direction ?

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2

If your analysis on the 30 minute chart is showing a sell, and if that analysis is correct then price should still go down regardless of the timeframe. But for how long is the question as shorter timeframe analysis can be unreliable for decent trades, unless you are scalping.

But it’s also important to look at the higher timeframes to see if there is a trend in place. For example, if the 1 or 4 hr chart is showing a clear uptrend then you might want to reconsider that decision to sell, or place a sell order instead.

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3

Theres no way of knowing if it will, otherwise we’d all be buying at the same time same place. Higher timeframes are more reliable and lower timeframes have more noise. The higher timeframe moves are made up of the lower timeframes. They dont have to move in the same direction. 4hr can be an uptrend but with every uptrend come retracements and the 15 min 30 min might show a downtrend which is just a small reteacement on the larger timeframe.

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4

At any given moment, price moves in the same direction on all time frames. If there is a reversal, you will see that in the lower time frames first. So, for example, it is possible to see a down candle on the 30m and an up candle on the H1. All that means is price is retreating from the higher value it had traced earlier in the hour.

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5

Thanks.this was helpful

6

Thanks. I really appreciate

7

Yeah, i agree with tradeforex007. I think it’s best to confirm the direction with a slower time frame.

You said it very well!

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Using the time frame for analysis and trade idea confirmation completely depends upon the duration of the trade. The best way is to first confirm your analysis in both 30 minute and 1 hour chart, if the price is constantly going down or up you can confirm the trade and place it. Continue using the same time frame to observe its price if you are inclined towards a day trade. But if you want to scalp, you should definitely go with 5-15 minutes chart.

9

It depends upon the volatility in the market.