Abstract：Are you thinking what Time frame is? Relax young Trader, it ain’t as complicated as it sounds, just as easy as 1-2-3... and one more thing to know is You’re almost done with high school!
Are you thinking what Time frame is？ Relax young Trader, it isn't as complicated as it sounds, just as easy as 1-2-3.
Nows not the time to get senioritis.
Multiple time frame analysis, or multi-time frame analysis, is the process of viewing the same currency pair under different time frames. Usually the larger time frame is used to establish a longer-term trend, while a shorter time frame is used to spot ideal entries into the market. Remember, a pair exists on several time frames – the daily, the hourly, the 15-minute, heck, even the 1-minute!
Anytime you use a chart, youll observe that there are different time frames being provided.
The current chart above is the “1 day” or daily time frame.
When you click on the “1 hour”, it will pop up the 1-hour chart. If you click on “5 minutes”, it will bring out the 5-minute chart and so on. There is a reason why chart apps gives so many time frames. This is because there are different market participants in the market.
Which means that different forex traders can have their different opinions on how a pair is trading and both can be completely correct.
Some will be traders who will focus on 10-minute charts while others will focus on the weekly charts.
Example John may see that EUR/USD is on a downtrend on the 4-hour chart.
However, Jane trades on the 5-minute chart and noticed that the pair just ranging up and down. And they could both be correct, yes!...So you can see that this creates a problem.
Traders sometimes get bewildered when they look at the 4-hour, see that a sell signal, then they hop on the 1-hour and see price slowly moving up. What are you supposed to do in this situation？
A. Stick with one time frame, take the signal, and completely ignore the other time frame？
B. Flip a coin to decide whether you should buy or sell？
Both options are terrible. So by considering the multiple time frames, what could be the benefits？
They provide you different perspectives and views of a currency pair.
They enable you to figure out upcoming support or resistance areas.
They enable you to spot trend changes earlier.
They help you to enter or exit a trade as early as possible.
They help to confirm the trend change in a higher time frame.
They permits you to know what other market participants are thinking.
They enable you to see the small picture, medium picture, and the big picture.
Fortunately for you, we here at wikiFx are not about to let you graduate without knowing how to use multiple time frame analysis to your trade advantage. We will start by guiding you which time frame to choose and concentrate on for your trade. It is important for Each forex trader to chose and trade a specific time frame that fits his or her own personality, as we continue we will discuss more on this later.
And Then the next is, well also teach you how to look at different time frames of the same currency pair to help you make better, and more educated trading decisions with us.
What Time Frame Should I Trade?
These champions have one thing in common: they not only work their butts off, but they also enjoy what they do.
"Patience is the key to everything," American comic Arnold H. Glasgow once quipped. The chicken is gotten by hatching the egg rather than crushing it."
Ask any Wall Street quant (the highly nerdy math and physics PhDs who build complicated algorithmic trading techniques) why there isn't a "holy grail" indicator, approach, or system that generates revenues on a regular basis.
We've designed the School of WikiFX as simple and enjoyable as possible to help you learn and comprehend the fundamental tools and best practices used by forex traders all over the world, but keep in mind that a tool or strategy is only as good as the person who uses it.