Multiple time-frame analysis involves monitoring the same currency pair across different frequencies (or time compressions). While there is no real limit as to how many frequencies can be monitored or which specific ones to choose, there are general guidelines that most practitioners will follow. Typically, using three different periods gives a broad enough reading on the market, while using fewer than this can result in a considerable loss of data, and using more typically provides redundant analysis. When choosing the three time frequencies, a simple strategy can be to follow a "rule of four." This means that a medium-term period should first be determined and it should represent a standard as to how long the average trade is held.
From there, a shorter term time frame should be chosen and it should be at least one-fourth the intermediate period (for example, a 15-minute chart for the short-term time frame and 60-minute chart for the medium or intermediate time frame). Through the same calculation, the long-term time frame should be at least four times greater than the intermediate one (so, keeping with the previous example, the 240-minute or four-hour chart would round out the three time frequencies).
Understand what multi time frame analysis is and why so many traders rely on it. How are lower and higher time frame price movements related? What are the most useful indicators to use?
In this webinar you will:
- Understand and read price action in different time frames
- Discover the key drivers behind significant intra-day price moves
- Use Multi Time Frame Analysis to identify high probability trades
Instructor: Stuart Cowell , HF Markets’s Head Market Analyst
Date: 11 May 11:00 AM GMT