While using a combination of Technical indicators can help confirm price movement and filter out for signals, most traders optimize to conduct multiple time frame analysis for additional confirmation this method simplify involves looking at the same currency pair across various time frame from the short term 15 minutes to the longer-term daily or weekly charts the reason behind this approach is that some traders are more visible on longer term time friends mean by some reversal signal or potential entry level might be clear on shorter term time frames with that it helps to have both a bird's-eye view of price action then to zoom in to determine exact entry or exit level for a trade . In this example the daily time frame of the currency pair is showing a very clear trend but it can be difficult to determine prices entry points for a long trade simply based on this chart. Zooming in to the the one hour time frame of the same currency pair can be helpful in pinpointing possible Fibonacci retracement levels or Break outs of nearby inflection points which would confirm that the the upcoming trend will continue there are no define it rules that state time frames you should look at, as you have determined based on your trading style for what works for you if you are a swing trader you might be more confident table looking at the daily chart and the 4-hour charge if you are a scalp trader you might want to watch the one-hour chat then zoom in to the the 15 minutes time frame. Some traders find price action and longer-term time frame to slow and then rather take quick moves with tight stop based on short-term timeframe other traders are not too comfortable about fast price movements on minute charge so they had rather trade the long-term charts and hold on to their trades for days or weeks of course there are a few advantage and disadvantage to favouring certain time frame for instance the advantage of sticking to longer-term charge in that allowed the traders to maintain his biceps without having to check intraday charts every now and then the advantage Tower is that this approach guarantee fewer trade signals on the other hand the advantage of looking at shorter term time frame is that the trailer is able to spot several trade opportunities very often. However transaction cost for these trades could pile aap and EID part of the profits this also requires the traders to be flexible and able to change bases quickly another factor to consider apart from one reading style when it comes to deciding which time frame to trade is capital trading short-term chart usually requires lower margin file longer-term status may require a bigger account to avoid getting a Margin Call. Thanks.
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