Using multiple time frames when you are trading allows you see the bigger picture for your trades. Getting a bird’s eye view of a trade is very important if you want to trade with Global Market great efficiency, and that means you can also earn more money in the longer run.
Decide which Time Frame Suits You
The first thing you have to remember is to choose the most relevant and appropriate time frame for your trading strategy and trading personality.
Doing this means that you should try Forex Currencies different time frames out in different market environments. You also have to write down and record the results you get, as well as analyse them. This way, you will not only gain insights about the market but also better see which time frame is the best for you.
Some Tips for Deciding on the Suitable Time Frame
Once you have already found what you think is the most suitable timeframe for you, you can go up the next higher time frame.
Afterwards, you try and make a strategic trading decision. Think about whether to go long or short depending on the direction of the market.
Then, go back to your desired time frame, which is the original time frame you chose, and make tactical decisions over your ideal enter and exit points. You will then place a stop loss and take profit orders on your preferred enter and exit levels.
Doing these things will keep you from seeing only what’s in front of you. You shouldn’t be tunnel-visioned when it comes to trading. You must add the dimension of time to your analysis, unless you want to be taken by surprise by unforeseen market movements and lose all your trades.
Developing the Habit
Further, you have to develop the habit of looking at multiple time frames when you are trading. It might get confusing or very difficult at first, but it will be for your benefit in the longer run.
Practice over and over again, and see how much you progress from one skill level to another.
And when you’re using your platform, master where all the proper keys are. You want to avoid getting stuck in the heat of trading while you don’t know where the time frame button is. Learn to shift quickly between frames, and learn how to analyse each kind of frame.
If possible, try to practice having a chart that has multiple time frames up at the same time. This means that you’re going to, somehow, get a real bird’s eye view of the market situation.
Don’t look at too many time frames.
It’s no advisable to look at too many timeframes at the same time, or you’ll be overloaded with too heavy information. The ideal count would be two or three time frames, and a number more than those will be considered over the top.
Focus on a set of time frames, and learn as much as you can about how the market behaves during those time frames.