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Learn How to Apply Multiple Time Frame Analysis

 2021 Oct , 07    COMMENTS      FOREX BROKER     Like
Hello traders,

We shall talk about multiple time frame analysis in this article. I'll demonstrate how to use various time periods and give you some helpful advice.

Let's begin by quickly outlining the categories for the time spans which we will be talking about:

The three primary types of time frames

  • Higher time frames.
  • Trading time frames.
  • Lower time frames.
1. Higher time frames

The market trend and the overall picture are identified using longer time frames. Time intervals of a week and a day fall within this group.

The most crucial step is to analyze these time periods. In these time periods, we estimate the market's future direction using trend analysis, and we create predictions and define the levels and regions from where we will trade those forecasts using structure analysis.

2. Trading time frames

The time periods used for trading are those during which positions are first taken. Only once the market hits the highlighted trading levels, or the regions on higher time frames, does analysis begin for these time periods.

My 4h/1h trading time periods. There, I'm seeking for evidence that the structures that I saw on longer time scales are indeed strong. There are several ways to validate that. The patterns of reversal price activity are my confirmations. The position is Unlocked after finding out the confirmation.

3. Lower time frames

30/15 minute charts are lower time frames. Although these time ranges are NOT used for trading, they occasionally offer some additional hints. Additionally, riskier traders might use these time frames to start trades before confirmation is seen on trading time frames.

Learn how to combine these three time period types. As you analyze, start at the highest time frame and work your way down, finding more and more hints. You'll be surprised at how effective that tactic is.