{"id":104591,"date":"2017-04-15T11:00:13","date_gmt":"2017-04-15T15:00:13","guid":{"rendered":"http:\/\/countingpips.com\/?p=104591"},"modified":"2017-04-09T11:00:37","modified_gmt":"2017-04-09T15:00:37","slug":"my-4-best-tips-for-multiple-frame-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/04\/my-4-best-tips-for-multiple-frame-trading\/","title":{"rendered":"My 4 Best Tips for Multiple Frame Trading"},"content":{"rendered":"
April 15, 2017<\/div>
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By Admiral Markets<\/b><\/p>\n

\"mtf.png\"<\/p>\n

Dear Traders,<\/p>\n

Many traders make all of their trading decisions on one single time frame. Other traders have stopped using multiple time frames after failing to implement the concept.<\/p>\n

By the end of this article, however, you will know why and how I use
\nmultiple time frame <\/a>(MTF) analysis to improve and optimise my discretionary trading decisions.<\/p>\n

My analysis always takes into account three time frames. I will show you exactly how each time frame
\nbenefits my trading plan.<\/strong><\/p>\n

\"Download<\/a><\/p>\n

Learn the best time frames<\/h2>\n

Which three time frames do I recommend?<\/p>

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\r\n
<\/div>\n

The answer is surprisingly simple:
\nall of them.<\/strong><\/p>\n

Do keep in mind that the time frames have sufficient distance from each other. I do not consider using a 1, 2 and 3 minute charts as multiple time frame (MTF) analysis because the time frames are way too close to each other.<\/p>\n

If you are using
\nMetaTrader 4<\/a> or MT4 Supreme Edition<\/a>, then you will always choose relevant three time frames with sufficient distance.<\/p>\n

Personally, I tend to use these time frames combinations:<\/p>\n

    \n
  1. Swing trading: <\/strong>weekly, daily, 4 hour charts.<\/li>\n
  2. Intra-day\/week trading: <\/strong>daily, 4 hour, 1 hour charts.<\/li>\n
  3. Intra-day trading: <\/strong>daily, 1 hour, 15 minute charts.<\/li>\n<\/ol>\n

    Long-term traders could use a monthly, weekly and daily (or 4 hour) chart combination. Scalpers could perhaps go with a 1 hour, 15 minute and 5 minute chart combination.<\/p>\n

    The bad news is, using multiple frame analysis requires both more attention and time from you than single time analysis.<\/p>\n

    The good news is, there are methods to
    \nquickly perform MTF analysis<\/strong> (multi time frame) by using specially indicators like the Mini Charts <\/strong>from     MT4 Supreme Edition<\/a> package.<\/p>\n

    \"mtf<\/p>\n

    Benefit of the highest time frame<\/h2>\n

    The highest time frames are primarily used for
    \nspotting support and resistance<\/strong> (S&R) levels. I identify S&R via tops and bottoms, fractals, Fibonacci retracement and target levels as well as Admiral Keltner band.<\/p>\n

    The price could either be at or close to a S&R level \u2013 or a ‘decision zone’ as I call it. It can alsi be in the middle part, in between S&R levels:<\/p>\n

      \n
    1. Price is at a key level: either breakout or bounce will occur.<\/li>\n
    2. Price is in the middle: either a continuation or a pullback will occur.<\/li>\n<\/ol>\n

      If the price is at a key level, <\/strong>then I will monitor the reaction of the candles and price action to see if a breakout or bounce is more likely to occur.<\/p>\n

      Warning: this is when I want to avoid going long right into resistance or short into support. Also if the price does breakout, I want to keep an eye on a strong breakout candle to avoid false breaks (more in the video below).<\/p>\n

      If the price is in the middle of zone, <\/strong>then I will typically look at one time frame lower to see how strong the trend is and whether a continuation towards the next S&R or a retracement back to the previous S&R is more likely.<\/p>\n

      The video below also explains how I monitor price action and S&R.<\/p>\n