Forex Trading With 3 Types of Time Frame
Multiple Time Frame, we already know why and how to use multiple time frames to do forex trading. If we go back to the previous lesson we can conclude that with multiple time frames we can see a picture of price movements (trends) that are long, medium, and short.
The biggest time frame we call the main trend that shows us the big picture of the movement of the currency pair.
The next time frame is a little faster than the main trend we call the medium trend which shows the normal picture of the currency pair that we are going to buy or sell.
The next time frame is the fastest period or can be called a short term trend that will help us to determine the right entry point.
To determine the main trend, medium trend, or short term trend it is very dependent on us. And this is not an absolute matter to be followed only please read in advance the shortcomings and advantages of using a long or short period when deciding to trade in the previous lesson.
The following is an example of using 3 types of time frames for forex trading.
- 1-minute, 5-minute, and 30-minute
- 5 minutes, 30 minutes and 4 hours
- 15-minute, 1-hour, and 4-hour
- 1-hour, 4-hour and daily / daily
- 4-hour, daily / daily, and weekly / weekly
Or if you have another time frame strategy you can use for forex trading, bro 🙂 it doesn’t have to be like the one above, it’s just that the 3 time frame combination above is generally used by traders.
It’s just that you need to pay attention when using multiple time frames is a clear difference in the direction of price movements in each type of time frame you use. Why should there be a significant difference because so you can have the right decision about the direction of price movements and get the right entry point.