How to Trade using Multiple Time Frames
January 24, 2011 by Forex Superb
Filed under Technical Analysis, Trading Systems
How to trade using multiple time frames Do they confuse you? How to choose the right time frames for your strategy? The right answer on previous questions are crucial for your Forex trading strategy success.
The first thing you should understand is what type of trader are you!? Scalper, day trader or swing trader? The most important time frame is H1, it’s some kind of time frame gravity. Why? No matter what trading style (scalping, day trading, swing trading) are you using for your strategy, you always need to know what is going on with current day on market, H1 is the best for that. You will get a lot of important information for current day, such as: daily high-low, daily open, daily range, you’ll see daily trend, possible reversal, patterns etc. I use H1 in all Forex strategies, this time frames watch almost every trader everyday.
Best Multiple Time Frames for “scalping”.
When I scalping my favorite time frames are M1 and M5. If you are scalper check H1 too. There is only one reason why I check H1 while scalping. I like to scalp in trend direction. If I see buy trend on H1 time frame I will use my scalping rules only for buy entries, opposite for sell trend. After I check H1, I switch time frames on M1 and M5 and that’s it. M1 is main time frame for my scalping strategy.
Best Multiple Time Frames for Day Trading.
Day traders use H1 as main time frame, me too. For more information I check D1 and H1.
Best Multiple Time Frames for Swing Trading.
Use D1 as your main time frame, watch H4 and H1 for entry and monitoring your trades.
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