Forex Multiple Timeframe Strategy - Technical Analysis Using Multiple Timeframes
Multiple timeframe forex strategy equals using 2 chart time-frames to trade forex - a shorter chart timeframe used for trading and a longer chart time frame used to check the forex trend.
Since it's always good to follow the forex trend when forex trading, in Multiple Chart Timeframe Forex Analysis, the longer chart time-frame gives us the direction of the long term forex trend.
If the long term forex trend direction supports the direction of the smaller chart time frame then the probability of opening a profitable forex trade is significantly increased. This is because even if you make a mistake the long term forex trend will eventually save you. Also if you trade with direction of the trend, then mostly you'll be on winning side - this is what this Multiple Time Frame Forex Analysis is all about.
Remember there's a popular saying by many traders and investors that says: 'The forex trend is your friend' - never go against the forex trend when trading.
There are four different types of forex traders - all these different types of forex traders use different chart time-frames to trade as shown and illustrated below.
Examples of how each type of forex trader uses multiple time frames forex strategy:
Forex Scalping - Multiple Timeframe Forex Analysis Scalping
Scalpers hold on to their forex trades for only a few minutes. The scalping forex trader never holds on to a FX trade for more than ten minutes. With the objective of making small amounts of pips as profit, 5 pips - 15 pips.
A Scalper using 1 min chart wants to open a buy trade, checks 5 minute chart, which looks like the one below, since 5 minute chart show forex trend is heading up, then decides from this multiple timeframe forex trading strategy its okay to open a buy trade.
Technical Analysis Using Multiple Timeframes - Forex Multiple Timeframe Trading Strategy
Forex Day Traders - Multiple Timeframe Forex Analysis Day Trading
Day forex traders hold on to their open forex trades for a few hours but not more than a day. With the aim to make quite a number of pips in profit, 30 - 60 pips.
Forex day trader trading 15 minutes chart wants to open a buy forex trade, checks 1 hour forex chart, which looks like the forex chart below, since 1 hour forex chart shows forex trend is heading up, then decides from this multiple timeframe forex trading strategy its okay to open a buy trade.
Multiple Time-Frame Forex Analysis Day Trading - Multiple Forex Time Frame Analysis - Forex Multiple Timeframe Trading Strategy
Swing Traders - Trading 2 or 3 Timeframes on Forex Charts
Swing forex traders hold on to their open forex trades for a few days to a week. With the aim to make a large number of pips in profit, 100 - 250 pips.
Swing trader using 1 hour forex chart wants to open a sell forex trade, checks 4 hour forex chart, which looks like the forex chart example below, since 4 hour forex chart shows the forex trend is heading downwards, then decides from this multiple timeframe forex trading strategy its okay to open a sell trade.
Trading 2 or 3 Time Frames on Forex Charts - Trading 2 or 3 Timeframes on Forex Charts - Forex Multiple Timeframe Trading Strategy
Position Traders - Multiple Timeframe Strategy
Position forex traders are traders who hold on to their forex trades for weeks or months. With the aim to make a large number of pips in profit, 300 - 800 pips.
Position forex trader using the daily chart wants to open a sell forex trade, checks weekly forex chart, weekly looks like the forex chart example below, since weekly forex chart shows the forex trend is heading downwards, then decides from this multiple timeframe forex trading strategy its okay to open a sell trade.
Multiple Time-frame Forex Strategy - Forex Multiple Timeframe Trading Strategy
Technical Analysis Using Multiple Timeframes - Trading 2 or 3 Timeframes on Forex Charts
