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Multiple Time Frame Analysis

 Multiple Time Frame Analysis  What is Multiple Time Frame Analysis  Multiple Time Frame Analysis, simply put, is the study of the same currency pair movements in different Forex rebate king cashbackinforexs  Remember, on our technical graphs, prices can be displayed in different time frames: daily, hourly, 4-hour, forexrebateindonesia 15-minute charts, and even 1-minute charts!  This means Forexrebateking two different traders have their own different views on the movement of a particular currency pair, but both of their views could be correct Zhang San may see that the EUR/USD is showing a downward trend on the 4-hour graph, however, Li Si sees from the 5-minute graph that the EUR/USD is just moving back and forth up and down while they both could be correct  ;As you can see, this raises the question of when they analyze the 4-hour chart, the graph is sending a sell signal, while when they then look at the hourly chart, they find that the currency is slowly moving higher, which can easily leave traders in confusion At this point, what should you do?  Only rely on the technical graph of a single time period to judge the exchange rate trend, regardless of other time period trend situation?  Use a coin toss to decide if you should buy or sell?  Fortunately, we wont graduate you until you learn how to trade using multiple time frames First, well help you decide which specific time frame you should focus on Each trader should choose the time frame that works for him or her to trade Second, well also teach you how to observe the same currency in different time We will also teach you how to observe how the same currency moves in different time frames to help you make more valuable cashback forex decisions Which time frame should I choose to trade?  One of the reasons why newbies dont do so well when they first start trading forex is that the time frame they choose to trade is usually the wrong one Newbies want to get rich quick, so they choose smaller time frames like the 1-minute chart or the 5-minute chart to trade and then, when it comes time to trade, they get caught off guard because, in fact, it doesnt Not for them  For some traders, they feel most comfortable trading on the 1 hour chart The hourly chart has a longer time frame, but its not very long, and also the trading signals will be fewer, but not very few trading on that time frame will give you more time to analyze the market sentiment, and you wont be caught off guard because of it  nbsp; On the other hand, we have a friend who never chooses to trade on the hourly chart frame For him, the price patterns on the hourly chart change too slowly, and he tends to trade the 10-minute chart which still gives him enough time (but not a lot of time) to make trading decisions based on his own trading plan Our Another friend is also not a big fan of trading on the hourly charts because he believes that prices change too quickly on the hourly charts He only trades on the daily, weekly, and monthly charts Now, you are likely to ask again, what is the best trading session for you?  Let me put it to you this way, if youve noticed, its up to you to adapt to the time frame youre trading in When you do trade, youll also feel some stress or frustration because, as is humanly possible, youre trading live However, your stress shouldnt stem from price patterns that move so fast that you have trouble make trading decisions, or frustration from patterns that move too slowly When we start trading, we should not just limit ourselves to a particular time frame We can start with the 15-minute chart Then, look at the 5-minute chart Then, we can also try the 1-minute chart, the daily chart, and the 4-hour chart This is perfectly normal for Its perfectly normal for newbies until you find the right time frame for your own trading This is why we recommend that you start with a demo trade, and after going through different time frames of demo trading, find the one that works best for yourself The breakdown of time frames As with everything in life, it all depends on you If you like to take things at a slower pace and always take it easy in every trade, maybe longer time frame trading would be better for you or, if you like an exciting, fast-in, fast-out trading style, then you should choose to trade in the 5-minute graph In the chart below, we have listed some basic time frames and the differences between each Description  You must also consider the size of the capital account you are trading in Shorter term trading allows you to make better use of margin and set tighter stops Longer time frame trading requires a wider range of stops to be set and, therefore, a higher requirement for the size of the capital in your trading account, only then can you avoid excessive volatility in the market due to margin call scenarios The most important thing you need to remember is that whichever time frame you choose to trade in, it needs to fit your own If you feel a bit undersized, like wearing your underwear too loosely or your shorts too short, then youll have a lot of problems trading up Thats why, we recommend that you take A period of simulated trading, you should fully try multiple sessions in this time to find the most suitable for your own trading session, which will help you make the best trading decisions When you finally determine your preferred trading time frame, then, it also means that you enjoy the time of trading fun has arrived at this time, you will start to use the multi-time frame to help you analyze market trends  nbsp;Go Long or Go Short Before we explain how to do a multi-time frame analysis, we feel its important to point out why you should actually have a general understanding of the different time frames after all, isnt it enough to analyze one technical graph?  Before you answer your questions, lets play a game called "Go Long or Go Short" that will show you why you should analyze different time frame graphs The rules of this game are simple you look at the graph and decide whether to go long or short is simple, right? ? So, lets get started!  Lets look at the 10-minute chart of GBP/USD on July 1, 2010, which was taken at 8:00 AM GMT We picked the 200 simple moving average on the graph, which looks to be holding steady as a resistance level  But, what happened next?  GBP/USD closed above that SMA resistance and rose further by 200 pips Youre probably thinking, this sucks!   What happened exactly? Or look at the 1-hour chart, what exactly happened to the exchange rate If youve been watching the 1-hour chart, you may have noticed that GBP/USD is actually at the bottom of an ascending channel Whats more, just above the channels lower support line, a doji pattern has formed which is a very clear buy signal  This ascending channel In the 4-hour chart to show more obvious  All of these graphs are the same time to show the same data they differ only in the time frame selected different Now you understand the importance of observing multiple time frames, right?  Weve only traded through 15-minute charts before, and we may never understand why, when everything looks great, the market action suddenly stalls or turns We never switch our thinking and turn our attention to a larger time frame to see whats really going on When the 15-minute graphs show that the market is indeed stalling or reversing This is usually because the exchange rate has met resistance or support on a larger time frame We learned after paying a lot of tuition that the larger the time frame, the greater the chance that the exchange rate will hold steady at a certain support or resistance level Trading multiple time frames is likely to allow us to avoid more losses caused by trading on a single time frame It allows you to trade The problem with this is that when a new trend forms in a larger time frame, traders who only focus on a smaller time frame are likely to suffer losses time frame trading is a good way to avoid losses. The problem with this is that when a new trend forms in a larger time frame, traders who focus on a smaller time frame are likely to suffer losses Time Frame Mashups Welcome back to our classroom with the latest version of our mashups, which we call "Time Frame Mashups" Time Frame Mashups, which are a mix of This means that we will teach you how to focus not only on your preferred time frame for trading, but also on longer-term time frames and shorter-term time frames, so that you can win at trading Ready? Are you sure you can do this? Youre halfway through this series of courses and you dont want to give up on it, do you?  First of all, you should have a general grasp of the markets operating dynamics Dont put your face too close to the market, you need to keep a distance from the market first You must remember that a certain trend within the long-term framework takes longer to form, which means that changes in the trend of the exchange rate requires greater market volatility with the same time, support and resistance levels in the long-term time After choosing your preferred time frame, you should focus on the price action in the longer time frame In the longer time frame graphs, you can make the corresponding long or short decision based on whether the market is in a trend or range. Determine your entry and exit strategies (set stop-loss and profit targets) As you know, this is probably the best use of multiple time frame analysis - you can determine your entry and exit points by analyzing short time frame patterns, and for longer time frame patterns, you can get the information that traders who only focus on a single time dimension have. You can get a broader view of trading that traders who focus on a single time dimension do not have access to Do you get it all? If you dont, it doesnt matter, well give you an example to help you understand things more clearly Youve heard the story of Cinderella, right? Suppose Cinderella got tired of cleaning at home every day and decided to start trading forex After a period of simulated trading, she realized that she liked trading EUR/USD best, and she was most willing to trade on the 1-hour chart She thought the 15-minute chart was moving too fast and the 4-hour chart was moving too slow - after all, she needed plenty of room for error. After all, she needs plenty of sleep to keep her looking good  The first thing Cinderella does is look at the EUR/USD 4-hour chart This will help her determine the general trend of the currency pair She finds that the EUR/USD is in a clear uptrend This signal suggests that all Cinderella has to do is simply find buy signals, after all, the trend is her best friend, right?  Now, she returns to her personal preferred time frame, the 1-hour chart, which will help her identify entry points before making a trading decision, also with the help of the stochastics  When Cinderella opens the 1-hour chart, she finds that the EUR/USD has formed a doji And that the stochastics had formed a golden cross in oversold territory!  However, Cinderella is still not quite sure - she wants to be further sure that she has found good entry points, so she opens the 15-minute graph to help her get even better entry points and give her more confirmation information  Now, Cinderella focuses her attention All focused on the 15-minute chart, she finds that the trend line is quite stable Not only that, but the stochastics are showing oversold on the 15-minute chart! Now, lets see what happens next  As you can see later, the EUR/USD uptrend continues and the currency continues to move higher on the hourly chart If Cinderella enters above 1.2800 and if she holds this order for the next few weeks, her profit would be 400 pips she might as well have bought a new pair of crystal shoes!  For how many time frames you should study the graphs, there should also be a limit you dont want to see, on a screen full of graphs that are sending you different trading messages Our advice is to observe the graphs in at least two time frames, and no more than three at most, because the more different time frame graphs you observe, the more confused you will be The greater the confusion will be, so that your analysis will come to a halt and you will go crazy Time frame combinations  We like to use triple time frames because with triple time frame analysis we are able to have a comprehensive understanding of the long term, medium term and short term trends of the exchange rate The longest time frame identifies the main trend of the price --This will show us the overall trend of the exchange rate The medium-term time frame is the most common time frame we use, which can provide us with a medium-term buy or sell signal The shortest time frame shows the short-term trend of the price, which can help us find the real entry and exit points  nbsp;You can use any time frame you feel comfortable with, provided that the time frames you choose are not too far apart or too close together Below, we recommend several common time frame combinations: -1 minute, 5 minutes and 30 minutes - 5 minutes, 30 minutes and 4 hour-15 minutes, 1 hour and 4 hours-1 hour, 4 hours and daily charts-4 hours, daily and weekly charts When you are deciding, how much time should be between different time frames, you should first determine, the price pattern between the smaller time frame and the larger time frame There should be some difference in the trend, that is, the smaller time frame of the price trend depicted in more detail, and not these in the smaller time frame can show the pattern trend, in the larger time frame will also show If the selected time frame is too close, then it will be difficult for you to find the different price trend situation in different time frames, which is also useless  nbsp;Summary: Multiple Time Frame Analysis PS: Dont get too close to the market before you start your market analysis, but always look at the market from a broader perspective Now that you have done that! You can add multi-time frame analysis to your forex toolbox!  Here are some suggestions you should keep in mind: -You must determine the right time frame for yourselfIn order to determine the right time frame for yourself, you need to try using different time frames in different market environments, keep a record of your trading results, analyze those results and ultimately find the best time frame for your own trading ; - Once you have found your preferred time frame, open the longer time frame graph and then, based on the price pattern in the longer time frame, determine whether to go long or short and then, again, turn to your preferred time frame (or shorter time frame) to determine your entry and exit strategy (set stop loss and take profit targets).  -Analysis of longer time frame graphs allows you to gain a broader perspective on trading that traders who focus on a single time dimension do not have access to; -Make a habit of analyzing multiple time frames when trading; -Make sure Make some trading practice dont trade without knowing the button to switch between different time windows you should know how to switch between different time windows quickly, you should also learn to display multiple time windows on the screen at the same time; - Choose the set of time frames you are going to observe and focus on the study of these time frames The study of these time frames, and thus from these time frames to learn all the market information you can learn; - Do not focus on too many time frames, too many time windows of information will make you overwhelmed, you may even collapse to choose two or three time windows is sufficient, more than this number is not good;  -Have a global grasp of the price trend is not enough you should use multiple time frame analysis to solve the problem of conflicting information sent by different indicators and time windows before starting your market analysis, do not get too close to the market, but should always look at the market from a broader perspective 
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