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- Talitha Taslim
- Posted Articles: 13
- Last Posted: 2017-08-03 08:59:33
FX Market: Trading in Different Intervals2017-08-03 08:59:33
Technical traders have encountered the multiple time frame at least once. But they normally forget this concept when a trader wants to gain ground in the market. They also tend to lose sight of the bigger trend, overlook high probability entry and stop points, and miss precise levels of support and resistance.
Multiple time frame analysis entails monitoring the same currency pairs throughout different breaks. Although there is no particular limit on which intervals should be chosen or how many frequencies can be trailed, there are guidelines to follow.
Long-Term Time Frame. This is the best time frame to use in trading currencies. Coupled with the foundation for depicting multiple time frame analysis, it is usually the best policy to begin with the long-term time frame and progress to the more granular frequencies. The prevailing trend is formulated by checking this time frame. It is prudent to remember to be friends with the trend.
Medium-Term Time Frame. Raising the granularity of the similar chart to the medium time frame, smaller movements within the wider trend become more evident. It is considered the most flexible among all the frequencies since both short- and longer-term time frames can be accessed from this juncture.