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Sunday, 21 April 2024
Forex-Trend-Several-Time-Frames-Indicator
Forex-Trend-Several-Time-Frames-Indicator

Forex-Trend-Several-Time-Frames-Indicator

Watch the testing video here:

Forex Trend Multiple Time Frames Indicator

 

No, we aren’t about to break out into song like the Glee cast.

Here at BabyPips.com, we’ve got our version of a mash-up, which we like to call the “Time Frame Mash-up”.

This is where multiple time frame analysis comes into play.

 

This is where we’ll teach you how to not only lock in on your preferred trading time frame but zoom in and out of charts so that you can knock a winner out of the park.

 

Are you ready? You sure you can hack this? You’ve basically got a semester left of BabyPips.com’s School of Pipsology?

You don’t wanna quit now, do you?

Didn’t think so!

First of all, take a broad look at what’s happening.

Don’t try to get your face closer to the market, but push yourself further away.

You have to remember, a trend on a longer time frame has had more time to develop, which means that it will take a bigger market move for the pair to change course.

 

Also, support and resistance levels are more significant on longer time frames.

 

Start off by selecting your preferred time frame and then go up to the next higher time frame.

There you can make a strategic decision to go long or short based on whether the market is ranging or trending.

You would then return to your preferred time frame (or even lower!) to make tactical decisions about where to enter and exit (place stop and profit target).

Just so you know, this is probably one of the best uses of multiple time frame analysis…you can zoom in to help you find better entry and exit points.

By adding the dimension of time to your analysis, you can obtain an edge over the other tunnel vision traders who trade off on only one time frame.

Did you get all of that? Well, if you didn’t, no worries!

We’re gonna go through an example now to help make things a little clearer.

How to Perform Multiple Time Frame Analysis

Let’s say that Cinderella, who gets bored all day cleaning up after her evil stepsisters, decides that she wants to trade forex.

After some demo trading, she realizes that she likes trading the EUR/USD pair the most, and feels most comfortable looking at the 1-hour chart.

She thinks that the 15-minute charts are too fast while the 4-hour take too long – after all, she needs her beauty sleep.

The first thing that Cinderella does is move up to check out the 4-hour chart of EUR/USD.

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