Why trade multiple time frames in Forex?


Hello,
Forex trading with multiple time frames.
What is it all about?
What are the benefits of such trading. Thank you.

Forex for beginners



Why simply not trade Forex using one favorite time frame?
Why do we need screening several time frames?

Many beginners start trading Forex looking at one chosen time frame. They bring along or develop an approach and start testing their knowledge and skills.

Sooner or later traders discover that despite all efforts results seems to be random: at one time their trading system would work well, while the other time, seems like under the same conditions, it would fail…
What’s going on?

One of the potential answers may lie in the narrowness of the research done by looking at one time frame and never knowing what is going on at the more superior level.

The higher the time frame the more importance it carries.
E.g. 5 minute time frame (TF) is more important than 1 minute frame.
1 hour TF is more important than 5 min.
Daily TF is more important than 1 hour.
Weekly TF is more important than daily etc etc.

The key to successful Forex charts analysis lies in the habit to screen time frames higher than the one you normally trade with.
Two superior time frames is just the right number. Screening more than that could overload traders with information, less than that might be not enough, but still better than nothing.

Let’s avoid philosophy again and go straight to common time frame pairs.

Fist is the one you trade, second and third are suggested time frames to check market major trends, important price levels and forming patterns on:

1 min => 5 min => 30 min
5 min => 1 hour => 4 hour
1 hour => 4 hour => daily
4 hour => daily => weekly

The main approach here is to start with a superior time frame, conduct the analysis, identify the main trend and market turning points. Then go 1 step lower, continue the analysis while referring now to the major frame. Then descend to original chosen time frame and identify trading opportunities that fit the analysis done on the global scale.

Seeing things from larger prospective help traders increase the rate of winning trades in Forex.

Very nice information. As a newbie, I fall in that trap and has now known the gravity of my mistakes.
I was used to using only one time frame, but suddenly would see a sharp reversal from my direction and end up losing all that I have gained. I will strictly keep to your advice and will follow it religiously.

Hassan,
A forex beginner

excellent information

I wish I had read this article six months ago. GooD Trading Technique.
Dotun Ade,
Forex Trader.

Not only does multiple improves the probability of success, it will alow you stay longer in a trade 

Chinedu Ogbu
FX trader

I am very happy about this information, as a biginner Iam doing well in trade
OLUCHI TREASURE

This is an eye opener, it does it all.
Elemo Oladimeji

Please explain, do we have to see the lowers time frames or the superiors?
For me it sounds like we have to check 5 min and 15 min if our time frame of trading is 1 hour. Am i wrong?

You neeed to post an example after putting the forth the concept.

It will make the concept easier to grasp.

Thank you.

An example would help to illustrate the concept much better.

Josh

yes it is true, and would be very good if you combine with Renko indicator

Please Explain, if i am trading in 5 min timeframe. in 1 hour timeframe indicator shows buy, then in 4hr timeframe indicators shows sell, now i take buy or sell

Kumar
Forex Beginner

After trading forex for two years,i found myself guessing around the directions of some pairs which didnt help at all,then the expected happened...I LOST A FORTUNE!Multiple timeframes recently made me know the reason i lost,adjusting now i'm a better trader,i would have love to upload my account under one month using the strategy ofcos with other indicators,its massive.THANK GOD FOR THE DAY I CAME IN CONTACT WITH MULTIPLE TIMEFRAMES SYSTEM!!!!!!!

ok we will acquire correct technique in near future

jayantha

thx a lot,i have a question,if i trade with 4 h after a got 1 h-15min-5 min this is okay?
i thought that will be better if i wil analys and 1D and 1W,i wait you answer
my mail is Turcu_c@ymail.com please accept my regards