Multiple Chart Time-frame Forex Strategy - Best Timeframe to Trade Forex
Multiple timeframe forex analysis 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 Trading analysis strategy:
Forex Trading Scalpers - Multiple Timeframe Forex Trading Analysis Scalping
Scalpers hold on to their forex trades for only a few minutes. The scalper forex trader never holds on to a FX trading trade for more than 10 minutes. With the objective of making small amounts of pips as profit, 5 pips - 15 pips.
A Scalper using 1 min chart wants to go long, checks 5 minutes chart, which looks like the one below, since 5 minute chart show forex trend is heading upwards, then decides from this forex trading analysis its okay to open a buy trade.
Multiple Chart Time-frame Forex Trading - Multiple Chart Time-frame Forex Strategy
Forex Day Traders - Multiple Timeframe Analysis Forex Day Trading Method
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 min chart wants to go long, checks 1 hour forex chart, which looks like the forex chart below, since 1 hour forex chart shows forex trend is heading upwards, then decides from this forex trading analysis its okay to open a buy trade.
Multiple Time-Frame Forex Analysis Day Trading - Multiple Time-Frame Trading Methodology PDF - Multiple Chart Time-frame Forex Strategy
Swing Traders - Multiple Time-frame Trading Forex
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 go short, 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 forex trading analysis its okay to open a sell trade.
Multiple Time Frame Trading Forex - Multiple Time-frame Trading Forex - Multiple Chart Time-frame Forex Strategy
Position Traders - Multiple Time-frame Strategy Guide
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 daily chart wants to short, checks the 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 forex trading analysis its okay to open a sell trade.
Multiple Time Frame Trading Strategy PDF - Multiple Chart Time-frame Forex Strategy
How to Define A Forex Trend
Using a forex trading system that has 3 forex indicators - Moving Averages Crossover System, RSI Indicator and MACD Indicator - and uses simple rules to define the forex trend. The rules are:
Upwards Forex Trading Trend
Both Moving Averages Moving Up
RSI Indicator Above 50
MACD Indicator Above Centerline
Downwards Forex Trend
Both Moving Averages Moving Down
RSI Indicator Below 50
MACD Indicator Below Centerline
