Multiple Time Frames Can Multiply Returns

30 มี.ค. 2023

In order to consistently make money in the markets, traders need to learn how to identify an underlying trend and trade around it accordingly.

Multiple time frame analysis follows a top-down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. After deciding on the appropriate time frames to analyze, traders can then conduct technical analysis using multiple time frames to confirm or reject their trading bias.

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.

HOW TO IDENTIFY THE BEST FOREX TIME FRAME?
Many traders, new and experienced, want to know how to identify the best time frame to trade forex. In general, traders should select a time frame in accordance with:

the amount of time available to trade per day
the most commonly used time frame utilized to identify trade set ups.

For example, day traders typically have the whole day to monitor charts and therefore, can trade with really small time frames. These range anywhere from a one-minute, to the 15-minute, to the one-hour time frame. Day traders that identify their trade set ups on the one-hour time frame can then zoom into the 15-minute time frame to spot ideal market entries.

Multiple time frame analysis usually produces high win rate, guaranteeing very limited risk.

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