Abstract：Trading with three-time frames gives us the most flexibility to catch the short, medium and long-term trends. Therefore we prefer using three time frames. We believed that this gives us the most flexibility, as we can decipher the long, medium, and short-term trends.
Trading with three-time frames gives us the most flexibility to catch the short, medium and long-term trends. Therefore we prefer using three time frames. We believed that this gives us the most flexibility, as we can decipher the long, medium, and short-term trends.
Determine Main Trend
The biggest time frame we consider our main trend, this shows us the big picture of the pair we want to trade.
For instance, on the daily chart, EUR/USD is trading above the 200 SMA which tells you that the main trend is UP.
Determine Current Market Bias
The next time frame down is what we usually look at, and it signals to us the medium-term buy or selling bias. Below is a 4-hour chart and its clear that EUR/USD continues to have a bullish bias.
Determine Entry and Exit
The smallest time frame shows the short-term trend and assist us find really good entry and exit points.
Multiple Time Frame Combinations
You can use any time frame you like as long as there is enough time difference between them to see a difference in their movement.
Out of the Time frame we listed You might use:
1-minute, 5-minute, and 30-minute
5-minute, 30-minute, and 4-hour
15-minute, 1-hour, and 4-hour
1-hour, 4-hour, and daily
4-hour, daily, and weekly and so on.
And When you‘re trying to decide how much time in between charts, just make endyre there is adequate difference for the smaller time frame to move back and forth without every move reflecting in the larger time frame. When the time frames are too close, you won’t be able to tell the difference, which would be pretty useless.
Summary: Multiple Time Frame Analysis