{"id":420600,"date":"2021-11-19T07:55:22","date_gmt":"2021-11-19T06:55:22","guid":{"rendered":"https:\/\/ftmo.com\/?p=420600"},"modified":"2025-04-04T13:01:54","modified_gmt":"2025-04-04T11:01:54","slug":"multi-time-frame-analysis-an-approach-suitable-for-every-trader","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/multi-time-frame-analysis-an-approach-suitable-for-every-trader\/","title":{"rendered":"Multi time frame analysis – an approach suitable for every trader"},"content":{"rendered":"
When technical forex traders enter the market, many of them remain focused just on the one time frame that suits their style. What they don’t realize is that this approach may cause them to lose track of important support and resistance levels or long-term trends. Simultaneously monitoring multiple time frames is an easy way to get a much better overview of what is happening in the market.<\/em><\/p>\n Forex gives everyone the ability to choose the strategy and approach that suits them. It doesn’t matter if the trader focuses on scalping, intraday trading, swing trading or takes a longer-term positional approach. Depending on his style, the trader chooses the time frame which he uses to follow the price movement and to decide when to enter the market.<\/p>\n Intraday traders naturally follow short-term time frames and definitely will not use four-hour charts to determine their market entries. On the other hand, long-term position traders tend to follow long-term trends on daily or weekly charts and shorter time frames are not that important to him in the first place.<\/p>\n However, this does not mean that an intraday trader cannot use the four-hour chart, just as a position trader can use the 15-minute chart. In any strategy, observing multiple time frames can be beneficial to everyone as it gives the trader a different perspective and view of the markets. A long-term trader on short-term charts can fine-tune his entries with greater precision while on the other hand, following longer-term trends can help intraday traders avoid some unnecessary entries that could end up in losses.<\/p>\n Since forex is the most liquid market in the world, even charts on the shortest time frames are still useful (they don’t look like spilled tea). In addition, the forex market operates from Monday to Friday 24 hours a day and during different trading sessions, traders can use different strategies and different time frames depending on whether the markets tend to create trends (European and American sessions) or move more sideways within a certain range (Asian session).<\/p>\n It is important to note that combining too many time frames can create confusion in the trader’s decision-making. In fact, different time frames may also send conflicting signals. It is also impossible to determine exactly which time frame is the most suitable for which trader.<\/p>\n It is generally recommended to follow three time frames and use the 4:1 or 6:1 rule. This means that the middle timeframe should be four (or six ) times greater than the shortest one and at the same time four (or six) times shorter than the longest one.<\/p>\n If the trader’s main time frame is one H1, he can use a four-hour or six-hour chart for a broader view of the markets. For more precise market entry, he will then use a 15-minute or 10-minute chart.<\/p>\n<\/a><\/p>\n
An approach suitable for everyone<\/h2>\n
Too much of a good thing<\/h2>\n