Welcome, Guest

Login Register
Forex question Is this a wrong way to do Multiple time frame analysis
avatar Matthew
Question by: Matthew - 04 Jan 2016, 23:51:28
Is this a wrong way to do Multiple time frame analysis
<a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK">InstaForex</a>
<a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK">InstaForex</a>
<a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK">InstaForex</a>
Answers (1)
avatar user 8433
Answer by: Peet - 05 Jan 2016, 00:01:42

What you can do is use one timeframe for the looking at and finding the trade setup. For example let us assume you use the 1 hour charts to find a trade setup. Then you go down to a lower timeframe to look for an entry signal. If you go down too fast to say the 1 minutes, then the market gyrations and up and down of the 1 minute chart is generally wayy too fast. If you think about it a 1minute chart has 60 bars in order to form a 1hr bar. A lot can happen in 60 bars. The market can shake you out and put you on an emotional roller coaster. The better way is to go down a timeframe, but not drop too low. So lets say you look at the 1 hour charts for trade setup. Do not go lower than 5 minute charts. I would prefer 15 minute charts. But in the end it is your call. Just make sure you are not trading too fast of a timeframe, as the market can go up and down and fake you out with all those really fast price bars.

&lt;a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK"&gt;InstaForex&lt;/a&gt;
Answer the question
Submit Cancel