Multiple time frame analysis is one of the most effective ways to find great trades. The rookie traders rely on the indicators readings to filter the false signals. Even after learning the proper use indicators, it’s really hard to assess the quality of the trade setups. If you manage to learn multiple time frame analysis, it won’t take much time to develop your skills like the professional traders. Based on this technique you can easily find good trades at any market condition. Though the system is extremely profitable, very few traders know the perfect way to do multiple time frame analysis. Today, we are going to teach you the proper way to do multiple time frame analysis.
Learn the technical analysis
Before you focus on multiple time frame analysis, you have to learn technical analysis. Technical analysis allows you to find the best possible trades at any market condition with an extreme level of precision. Though there are many trading techniques, you need to rely on a simple strategy. Learn the use of Fibonacci retracement tools, trend line, etc. to find the best possible trades. When you do the technical analysis, you have to understand the importance of higher time frame signals. The lower time frame always generates messy signals and it became nearly impossible to make a consistent profit. But if you stick to the higher time frame, you will get quality trades.
Using a different time frame
Studying different time frame in your online trading platform is known as multiple time frame analysis. The new traders execute high-quality trades based on multiple time frame analysis and make a decent living out of trading. When you study a different time frame, you need to give more priority to the higher time frame trade signals. At times you might find buy signals in the daily time frame and sell signals in the 1-hour time frame. This is where you need to stay in the sidelines. If you study three different time frames, you must get the same signals. Unless you get the same signals, the chances are very high that you will lose money from that particular trade.
Blend the fundamental data
Before you execute the trade based on multiple time frame analysis, you need to blend the fundamental data to increases your win rate. Those who ignore the high impact news are most likely to lose a big portion of their investment. Being a new trader in the Forex market, you have to understand the fact, trading is all about precision. To find the best possible trades, you must use the technical and fundamental data at the same time. Make sure you do the technical analysis based on multiple time frame analysis. Once you come to a decision, analyze the news factors and see whether it merges with your technical decision.
Dealing with the risk factors
Though multiple time frame analysis is a great way to secure big profits in the Forex market, you still have to lose trades regularly. Losing trades are inevitable and you can’t become a profitable trader without doing the proper market analysis. Unless you work hard and prepare yourself for the worst-case scenario, you will never have a business mindset. The professional businessman in Singapore know the proper way to embrace the loss. Train your mind so that you can deal with the losing trades without any stress. Never try to make big profits from this market by increasing the risk factors. Trading is more like finding decent profit-taking opportunity with low-risk exposure. So, learn the proper way to manage your risk exposure and it will help you to become a better trader. Think twice before you execute any trades. Give priority to the daily time frame data when you focus on multiple time frame analysis. Last but not least, never ignore the high impact news.