Determine Main Trend
The largest time frame we consider our main trend – this shows us the big picture of the pair we wanna trade.
For example, on the daily chart, EUR/USD is trading above the 200 SMA which tells you that the main trend is UP.Determine Current Market Bias
The next time frame down is what we normally look at, and it signals to us the medium-term buy or selling bias.
on the 4-hour EUR/USD chart must continues bullish trend.Determine Entry and Exit
The smallest time frame (1-hour ) also trend up then you can find really good entry and exit points.
Multiple Time Frame Combinations
You can use any time frame you like as long as there is enough time difference between them to see a difference in their movement.
You might use:
- 1-minute, 5-minute, and 30-minute
- 5-minute, 30-minute, and 4-hour
- 15-minute, 1-hour, and 4-hour
- 1-hour, 4-hour, and daily
- 4-hour, daily, and weekly and so on.
