Knowing how to analyze the different time frames can become handy when trading in the Forex market. It is a simple process, even though it sounds more complicating and confusing than it is. It is the process of looking at the same pair and price, but looking at them using different time frames on the market. A pair can exist on a number of different time frames which include the daily, the hourly, 15 minute, and even the 1 minute time frame.
Different traders are able to have different opinions and feelings on how a pair is being traded because of the different time frames. What’s more is that all of the traders can be correct on their opinions. Since the times basically meet at a certain point, even though one is trading on the 4 hour chart, the other trader might be on the one minute, and in this case they can both be right because of the hours difference and the changes in the up and downs for the trade.
This also can complicate the trading market because the trades can sometimes become confused when looked at in the 4 hour time frame. This is because the traders will see the sell signal on the trade in the 4 hour, and then hop over to the 1 hour and see that the price of the trade is slowly but surely moving up at the same time.
What can you do to eliminate this confusion?
You will want to stick with just one time frame to eliminate any confusion that might come along with jumping from time frame to time frame. You will then want to try to ignore the other time frames. You can decide based on which time frame works best for you. You should be able to use the multiple time frame analysis to your benefit while trading which helps you gain money in the long run instead of running around blindly, not knowing which time frame is best.
You should try to focus on just one time frame, and you can find out how and which one works the best for you. You can choose the specific time frame that works best with the trader’s personality. This provides you with the best possible time for trading. You can also look at the time frames of the same currency pair to make better and more educated decisions on which time frame to go with, depending on the currency pair in the trade.
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