To make it easier to be called, then I will be short term multiple time-frames of analysis becomes MTFA. MTFA involves some time-frame (short as my next TF) for the same currency pair. Indeed there is no limit on how much raw TF can be used, but there is a sort of "Guide" who you need to follow.
The use of three different TF is usually enough to provide ample market outlook. If too few TF are used, then the information will you get anything less. Conversely, if too much, thus his analysis tends to be "excessive" thus becoming incompatible with your forex currency trading system.
TF which is "medium", or the middle ages, must be first established as a rule of thumb how long (on average) the transaction will be left open. Well, from there recently stepped into the TF shorter (short), who must be at least one quarter of the mid TF of yesteryear.
So, if TF is H1 (hourly) 60 minutes, then the short TF be M15 (15-minutes).
By the same reckoning, TF that "length" should at least four times greater than the "medium" TF of yesteryear. Because the last TF medium is H1, the TF that "long" be H4.
The rules above in MTFA known by the name "rule number four".
For this example, now we've got three TF, including:
-M15, kitas call it as TF short
-H1, we refer to as TF medium
-H4, we give namaTF long
Very important choosing the right TF. A long term trader who always let his position open – for example – a month, should not use a combination of TF above. It might be better to use other combinations such as Daily (D1), Weekly (W1) and Monthly (MN). The combination in the example above are more appropriate for use by short term traders or day traders.
TF Long
Once you equip yourself with basic set TF in the MTFA, now's the time to apply it in forex trading. With this method, it is generally better to start from the long-term TF (TF long). By observing the TF long, you will be able to find the most dominant trend.
To open a position, do not use TF long as signals. TF long only used to determine the trend generally only, so the position is opened at a later date should be in line with the trend seen in TF this long. But that does not mean that you are in no way allowed to open a position contrary to the trend in TF long, however you should always remember the concept of "the trend is your friend". Of course the position contrary to the general trend will have a lower chance of success than a position in line with the general trend.
TF Medium
In the TF Medium, you will be able to see the vibrant vibrant movement with more apparent than in the TF Long. In a Medium that You later TF can specify approximately when it will be open positions. The instructions in this Medium later TF will be broken out again at lower TF, TF is Short.
In the development of trading techniques, is often precisely in TF the Medium you will get an early indication of the likely reversal (reverse direction).
TF Short
On TF this later you should find an entry signal (buy or sell). This is because the fluctuations that occur can be seen more clearly so that a trader will be able to take a better entry level. But remember that the signal appears on the TF should be in line with a trend that has been shown in bigger TF.
In the next section You will learn later on how to implement this MTFA. How do I incorporate it, how to read it and take its decision.
to be continued....
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