the medium-term time frame, the general uptrend seen in the monthly chart is still identifiable. Monthly Chart, as a swing trader, I am looking to exploit short term moves in the market, and as such the monthly chart is too far outside my relevant trading time frame to be useful, so I rarely refer to it in my shorter term. For example, if after I have done an evaluation of the daily chart and I have formed forex insegnante perché a strong bias on a particular currency pair, I will zoom down to the 240 minute. Step 2: next you switch to the 4hr chart and see where the 200ema is relative to the price. Utilising three different periods is usually enough to give a wide enough reading on the market.
60 minute chart This is my execution time frame. The appliance of medium-term time frames.
In this example, that would be the 15-minute chart. There will always remain uncertainty. Instead of using a Top Down approach, many traders incorrectly apply multi time frame analysis by using a bottom up approach. By looking at the long-term time frame, the dominant trend is established. For the DTT traders all of the above is well-known, but for others, this approach is new, or almost new. With this approach of studying charts, it is usually a good idea to begin with a long-term time frame and work down to the other frequencies. As you can see, this poses a problem. (For related reading, see. How do YOU view multiple frame analysis? Same answer as above: every timeframe have to match and have the same trend. This timeframe is 1/4x 1/6x the trading time frame. This implies that a medium-term period must be first identified and it should illustrate a standard as to how long the average trade is held.