Forex Trading requires a lot of analysis, market prediction, and timely decisions to make profits. But we make many mistakes here and lose our money with the wrong prediction. In Trading Multiple Timeframe, we can do the analysis better and increase the chance of making a profit.

In Multiple Timeframes, we can identify both higher and lower timeframes; that is the time we have to ensure for trading. Or, there is no chance for profit from Forex. So, I will here explain how you will use the timeframes to secure your capital and do trading.

The process may sound complex, but I will explain it to you.

What is Trading Multiple Timeframe

In Multiple Timeframes, we must find the right higher and lower timeframe to do our trading. Here 4 and 6 are the numbers to find the right point. If we have an entry point of 5 minutes, then by multiplying with 4, we have a lower timeframe of 20 minutes. Similarly, we multiply 5 minutes by 6 to find the higher timeframe, which is 30 minutes. So, we have to do trading for between 20-30 minutes.

• If we enter the trade when the price exceeds the trend line, we will be in an extended position. We will be in a short position if we enter the trade when the price is below the trend line.

The most important thing is that you should not trade with only one timeframe, try multiple timeframes to predict the market trend. The reason for this is that when we use one timeframe, we cannot make sure if we are trading in the right timeframe or not.

Besides, we can trade with multiple timeframes, but it is better to trade with multiple timeframes because it is more secure. We identify the multiple timeframes to find the lower and higher timeframe for easy assessment.

Multiple Timeframe Analysis Process

Understanding the Multiple Timeframe trading process requires two things-

• At first, you have to understand your chart properly; here, it will give you the data on market price.
• On the other hand, you have to find the higher and lower timeframe that will tell how much time you have to monitor the trend and do trading.

For hourly charts, you should look at the higher and lower timeframes.

• The higher timeframe is usually the shorter timeframe,
• and the lower timeframe is usually the more extended timeframe.

I will tell you hereafter to look at the pricing trends to make the right move.

Also, when we talk about timeframes, we can divide them into two different types than before.

• The first one is the shorter timeframe, and the second one is the longer timeframe.
• The short timeframe is less than 1 day, while the longer timeframe is more than 1 day.

When we use a longer timeframe, we can see the bigger picture, giving us more details.

Perfect Timeframe for Day Trading

When we want to use the Timeframe method for day trading, we should do it between 9.30 am to 10.30 am. But why? It is the opening hour, and the market has more liquidity. At this time, the market goes very high or very low, that we can use for make a sell to ensure profit.

If you buy or sell at the opening hour, you have to wait until the market goes down or up, so you lose your opportunity to make money. You have to wait until the market is stable, be sure about the price prediction and then you can make a sell or buy.

The process is very simple; you can do it anytime in the morning when the price fluctuates. You must set a stop loss point and proceed.

Perfect Timeframe for Scalping

If you want to use the Timeframe method to do Scalping in Forex, you need to focus on the right time. It can be from one minute to fifteen minutes, but scalpers love doing it between one and two minutes. It works better, but we must choose a highly liquid currency pair to ensure the profit.

In contrast, if you are trading the currency pairs that have been created by the exchange itself, it is not necessary to be very accurate. The best way to trade with this type of pair is to choose a low volume time frame.

For better understanding, check the below chart. The timeframe is the time of the day when we are trading. There are three different timeframes:

1. The first timeframe is the 1-minute timeframe. It is the most popular and most used timeframe used by scalpers. The price action will move fast, but it is very volatile.
2. The second timeframe is the 5-minute timeframe. This is also very popular because it is the most liquid timeframe. But the price action moves slower than the 1-minute timeframe.
3. The third timeframe is the 15-minute timeframe. It is a bit less popular than the others, but it is still widely used because the trader can give more time to analysis. The price action moves faster than the 1-minute timeframe.

Best Forex Timeframe

Technically speaking, in Forex, we have our eyes on the right time for trading and making a profit.

• So, for Day trading, we have to use a minimum 4-hour timeframe that is enough to follow the trends and attempt your sell.
• On the other hand, for Scalping, 15 minutes can be the ideal trading time. Follow them, and you will get some good results.

For example, if you are using the 15-minute timeframe and find a good buy opportunity, then it’s better to take the risk of buying at that moment because it’s possible to make more money from the trade.

It is essential to know the market price trends before starting to trade. The first thing we need to do is to check the market condition and see if it is suitable for us.

Last Sayings

I have discussed Trading in Multiple Timeframes with some examples and real scenarios. If you have got it properly, this is an excellent technique to apply for Day trading and Scalping. So now we have realized that the perfect timeframe will give you access to market price trends, and you can make your move to ensure profit.