Summary: Multiple Time Frame
Analysis
So now you’re done! Now you can add
multiple time frame analysis to your forex trading tool box!
Here are a few tips you should
remember:
You have to decide what the correct
time frame is for YOU. This comes from trying different time frames out through
different market environments, recording your results, and analyzing those
results to find what works for you.
Once you’ve found your preferred
time frame, go up to the next higher time frame. Then make a strategic decision
to go long or short based on the direction of the trend. Then return to your
preferred time frame (or lower) to make tactical decisions about where to enter
and exit (place stop and profit target).
Adding the dimension of time to
your analysis gives you an edge over the other tunnel vision forex traders who
only trade off on only one time frame.
Make it a habit to look at multiple
time frames when trading.
Make sure you practice! You don’t
wanna get caught up in the heat of trading not knowing where the time frame
button is! Make sure you know how to shift quickly between them. Heck, you
should even practice having chart containing multiple time frames up at the
same time!
Choose a set of time frames that
you are going to watch, and only concentrate on those time frames.
Learn all
you can about how the market works during those time frames.
Don’t look at too many time frames,
you’ll be overloaded with too much information and your brain will explode. And
you’ll end up with a messy desk since there will be blood splattered
everywhere.
Stick to two or three time frames. Any more than that is overkill.
We can’t repeat this enough: Get a
bird’s eye view. Using multiple time frames resolves contradictions between
indicators and time frames. Always begin your market analysis by stepping back
from the markets and looking at the big picture.
