Experiences in forex trading, by a special way.

November 14, 2022

Success Or Failure From Time Frame

Time frame is a very important factor in technical analysis. Understanding timeframes, and knowing multi-timeframe analysis will be highly effective, especially in forex trading.


Characteristics of timeframe:
- Each timeframe has its own trend, but is related to each other.
- Large timeframes will overwhelm small timeframes.
- In Forex trading often use 9 time frames, including: M1 (1 minute), M5 (5 minutes), M15 (15 minutes), M30 (30 minutes), H1 (1 hour), H4 (4 hours), D1 (1 day), W1 (1 week), MN (1 month).
- Depending on the trader's goals, they choose groups of time frames for analysis and trading. For example, when trading for short profits, entering and exiting orders during the day, traders often choose a group of 3 time frames: M15 to analyze the main trend, H1 for general analysis, and M5 to find entry and exit points. Or for medium and long-term traders, they often choose a group of 3 timeframes: D1 to analyze the main trend, W1 or MN for overall analysis, and H4 to find entry or exit points.
- Trends of time frames stand side by side, often with similarities. For example, M30 and H1 usually always have the same trend (M30 uptrend, H1 too).
- Time frames that are far apart can have contradictory phenomena, about trends. For example M5 uptrend but H1 downtrend, this is normal.
- You should use the large time frame to guide and decide whether to buy or sell. Then use a smaller time frame (about 6 to 12 times unit time) to find entry and exit points, it is recommended to combine using technical patterns with volume signals. For example: H1 is in an uptrend, so you can wait for a bearish correction on H1, then move to M5 (M5 is 12 times smaller than H1, 5 minutes x 12 = 60 minutes = 1 hour), M5 is a downtrend, and find a bottom at M5 to BUY. consider double bottom pattern at M5, with volume signal to increase accuracy. Of course, before deciding to buy direction on H1, we have to look on H4, see if there is any inconsistency, assuming H4 is in a downtrend or in an area where the price is likely to fall sharply (for example, the price meets the resistance level). resistance), buying on H1 will be risky.

- Which timeframes to combine depends on each trader, and on each trading style.
- With a large time frame, as long as you correctly forecast 1 candlestick, you can also make a lot of profit, due to its long time (eg MN or W1 candlestick).
- When you understand the timeframes well, and do multi-timeframe analysis effectively, your trading results will be much better. Regardless of whether you use it to trade forex or other products, as long as technical analysis is applied.

Best regards,

CaPhiLe.Com

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