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Trading Using Many Time Frames

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Many professional forex traders use extensive methods which include the use of many timeframes, and I also trust this system. To trade with many timeframes, traders must first look at the timeframe in the long run, such as the monthly or weekly chart to find out trends in general. This is actually quite easy; if the trend generally goes up, then you have to open a buy position, whereas if the trend generally goes down, then put short positions.
 

Next is to look at a shorter timeframe, like in the H4 or H1 chart to look for trading opportunities. As I stated above, if the trend generally goes up, then you have to open a buy position; but this does not necessarily mean that you may not open sell positions at all. There will always be an opportunity for movement against the trend that will open up opportunities for you to trade. For example, when there is a strong uptrend, then a minor retracement down can be a potential trading opportunity. Finally, look for a lower timeframe, such as 15M chart to ensure the correct entry point.



Because I am a day trader, I don't monitor the daily chart, and instead use H4 and H1 charts to look at trends in general. Then, I will look at the M15 and M5 charts to see if there is a trading opportunity that appears. Of course, this can vary, it all depends on how long you want to hold the trade.


The thing that makes trading with many timeframes powerful is its ability to put traders on the right side of the market, as well as to show available entry opportunities. In one of my favorite books by Dr. Alexander Elder, he explained about the "Triple Screen" method used in the use of many timeframes, complete with details.

In Come Into My Trading Room: A Complete Guide to Trading, Elder said:

"Triple Screen resolves contradictions between indicators and timeframes. Reaches strategic decisions on long-term charts, uses trend-following indicators - this is the first screen. Then continues to make tactical decisions about entries and exits on intermediate charts, using oscillators - this is the second screen. Then provide several methods for placing buy and sell orders - this is the third screen, which we can apply using the intermediate chart or short-term chart. "

"It starts from choosing your favorite timeframe, which is the chart you like to use, and call it 'intermediate. Then multiply the five terms to find your long-term timeframe. Apply the trend-following indicator on the chart to reach a strategic decision to open long, short, or step aside from the market. Get out of the market (not open trading) is also one of the positions that can be taken. If the long-term chart displays bullish or bearish, go back to the intermedate chart and use the oscillator to find entry and exit points in the same direction as indicated by the long-term trend. Put the profit target and stop loss before switching to the short-term chart, if any, to improve the quality of entries and exits. "


Let me give an example. To trade with this strategy, traders will start with their favorite timeframe, say H4 chart, and call it "intermediate". To find the long-term chart at what timeframe, multiply by five (or 4, or 6). Thus, the long-term chart can be a daily chart (H4 chart x 5 = H20, H20 is closely related to the daily chart / D1). Whereas to get the short-term chart, the intermediate chart must be divided 4-6. So, the short-term chart in this example can be an H1 chart (H4 chart ÷ 4 = H1 chart).


Long-term charts should be the first screen where you can focus on trends and use indicators such as Moving Averages, MACD, or trendlines to decide whether you will open a buy or sell position, or not trade because the market is not trending. The intermediate chart is the second screen that can be applied to Stochastics or RSI to identify the pullback entry zone. Finally, on the short-term chart, or the third screen, you are looking for breakout support / resistance that is in accordance with the direction indicated by the long-term trend to guide the trading entry.


This triple screen strategy is really good. I always do it; check the higher timeframe first before opening a trading position at a lower timeframe. Forex trading with just one timeframe is like blind trading; You will not know what happened to a larger condition.


Linkback: https://www.forex.zone/forex-education/29/trading-using-many-time-frames/1301/
#1 - February 11, 2019, 03:56:54 AM

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i am agree with you, my mentor use to say that too, if you want open position in H4 go check that lower time frame before open position, as my self i am still confuse the right time to open position, i am still learn and maybe i can manage like my mentor and you just said
#2 - February 11, 2019, 04:08:27 AM
« Last Edit: May 19, 2019, 11:23:09 PM by Admin »

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Trading Using Many Time Frames in Forex Education_xx
Many professional forex traders use extensive methods which include the use of many timeframes, and I also trust this system. To trade with many timeframes, traders must first look at the timeframe in the long run, such as the monthly or weekly chart to find out trends in general. This is actually quite easy; if the trend generally goes up, then you have to open a buy position, whereas if the trend generally goes down, then put short positions.
 

Next is to look at a shorter timeframe, like in the H4 or H1 chart to look for trading opportunities. As I stated above, if the trend generally goes up, then you have to open a buy position; but this does not necessarily mean that you may not open sell positions at all. There will always be an opportunity for movement against the trend that will open up opportunities for you to trade. For example, when there is a strong uptrend, then a minor retracement down can be a potential trading opportunity. Finally, look for a lower timeframe, such as 15M chart to ensure the correct entry point.



Because I am a day trader, I don't monitor the daily chart, and instead use H4 and H1 charts to look at trends in general. Then, I will look at the M15 and M5 charts to see if there is a trading opportunity that appears. Of course, this can vary, it all depends on how long you want to hold the trade.


The thing that makes trading with many timeframes powerful is its ability to put traders on the right side of the market, as well as to show available entry opportunities. In one of my favorite books by Dr. Alexander Elder, he explained about the "Triple Screen" method used in the use of many timeframes, complete with details.

In Come Into My Trading Room: A Complete Guide to Trading, Elder said:

"Triple Screen resolves contradictions between indicators and timeframes. Reaches strategic decisions on long-term charts, uses trend-following indicators - this is the first screen. Then continues to make tactical decisions about entries and exits on intermediate charts, using oscillators - this is the second screen. Then provide several methods for placing buy and sell orders - this is the third screen, which we can apply using the intermediate chart or short-term chart. "

"It starts from choosing your favorite timeframe, which is the chart you like to use, and call it 'intermediate. Then multiply the five terms to find your long-term timeframe. Apply the trend-following indicator on the chart to reach a strategic decision to open long, short, or step aside from the market. Get out of the market (not open trading) is also one of the positions that can be taken. If the long-term chart displays bullish or bearish, go back to the intermedate chart and use the oscillator to find entry and exit points in the same direction as indicated by the long-term trend. Put the profit target and stop loss before switching to the short-term chart, if any, to improve the quality of entries and exits. "


Let me give an example. To trade with this strategy, traders will start with their favorite timeframe, say H4 chart, and call it "intermediate". To find the long-term chart at what timeframe, multiply by five (or 4, or 6). Thus, the long-term chart can be a daily chart (H4 chart x 5 = H20, H20 is closely related to the daily chart / D1). Whereas to get the short-term chart, the intermediate chart must be divided 4-6. So, the short-term chart in this example can be an H1 chart (H4 chart ÷ 4 = H1 chart).


Long-term charts should be the first screen where you can focus on trends and use indicators such as Moving Averages, MACD, or trendlines to decide whether you will open a buy or sell position, or not trade because the market is not trending. The intermediate chart is the second screen that can be applied to Stochastics or RSI to identify the pullback entry zone. Finally, on the short-term chart, or the third screen, you are looking for breakout support / resistance that is in accordance with the direction indicated by the long-term trend to guide the trading entry.


This triple screen strategy is really good. I always do it; check the higher timeframe first before opening a trading position at a lower timeframe. Forex trading with just one timeframe is like blind trading; You will not know what happened to a larger condition.

for me opening a lot of time frames will make our analysis even more confusing. so just use 1 time frame. The M15 time frame represents the trend itself, so when we open another time frame it will change our pattern and analysis. Make your sop select the appropriate time frame, no need to move another time frames.

just share...
#3 - February 11, 2019, 05:55:24 AM

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Trading Using Many Time Frames in Forex Education_xx
for me opening a lot of time frames will make our analysis even more confusing. so just use 1 time frame. The M15 time frame represents the trend itself, so when we open another time frame it will change our pattern and analysis. Make your sop select the appropriate time frame, no need to move another time frames.

just share...
Yes, it is true.
But some traders see a larger time frame to look at trends and see a smaller time frame to look for opportunities to enter.
it all depends on the traders themselves.
by the way, thank you for sharing.
#4 - February 11, 2019, 06:43:22 AM

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i am agree with you, my mentor use to say that too, if you want open position in H4 go check that lower time frame before open position, as my self i am still confuse the right time to open position, i am still learn and maybe i can manage like my mentor and you just said
looking at a smaller time frame to look for entry opportunities is not a bad thing.
#5 - February 11, 2019, 06:48:44 AM

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Focus is what we need before we go straight to trade for real using our own money. This means we gotta use everything we understand so far and it doesn't matter how simple or basic the strategy is. Avoid using many things at once and in this case it's about time frame. Most traders are using some combination between H1 to Daily or H4 to Daily. They choose the small time frame as their time frame to enter and use the big one as the time frame to analyze market.
#6 - February 11, 2019, 07:18:16 AM

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If its me i always check at timeframe H1 before buy at time frame 30 or 15 because we will lnow ehre the price is heading. And yeah I only open 2 or 3 just to confirm my buy action
#7 - February 11, 2019, 07:34:20 AM
« Last Edit: May 19, 2019, 11:23:22 PM by Admin »

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I think. using a lot of time frames can give us more valid instructions in determining the price position we want. especially so the price we take is a price that can give us a good profit.
#8 - February 11, 2019, 07:38:41 AM
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trading by utilizing many timeframes is very good and can be done. so we see trend opportunities with large timeframes and for entries with small timeframes.
#9 - May 18, 2019, 02:26:38 AM

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trading by utilizing many timeframes is very good and can be done. so we see trend opportunities with large timeframes and for entries with small timeframes.
it's a wise step, utilizing large and small timeframes to find a good OP point. it must be like that, we must be careful
#10 - May 18, 2019, 02:57:03 AM

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It's true sir, but if I only use 2 Time frames to monitor prices, if too much TF is used it also makes it complicated.
#11 - May 18, 2019, 03:00:36 AM

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it's a wise step, utilizing large and small timeframes to find a good OP point. it must be like that, we must be careful
this is just a simple strategy, even the above has been explained about taking advantage of a good entry timeframe with a market. and it should be like that, we as traders are demanded to be careful in everything.
#12 - May 18, 2019, 03:01:25 AM

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this is just a simple strategy, even the above has been explained about taking advantage of a good entry timeframe with a market. and it should be like that, we as traders are demanded to be careful in everything.
great sir, always smart and careful on every trade, I think you will succeed in this forex sir.
#13 - May 18, 2019, 03:16:15 AM

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I think trading with many time frames is better because we can see from various time frames
#14 - May 18, 2019, 04:12:37 AM
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The use of time frames should be adjusted to the style and trading character that we have.
#15 - May 18, 2019, 11:04:02 AM

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