Trading using multiple time frames

Trading using multiple time frames

Why do we need to trade using more dynamic?

To improve the efficiency of our trading strategy. We see a trend by using the high timeline of what we intend to use smaller time frame to enter the trade.

Say we want to trade using the Daily Charts. We take weekly charts to see a trend. Suppose that it is in uptrend chart Weekly. We will tend to trade only long positions. We will use entries daily lists to enter long positions only. When we sell signals generated will simply turn off our long positions. That we do not sell short.

I guess it is a downtrend in the scheme Weekly. We will tend to trade only short positions. We will use entries in the daily charts to enter short positions only. When buy signals are generated we will simply turn off our short positions. That we do not enter long positions.

Now that we are using two dynamics. Now comes the time of entry of trades or adding additional jobs. (Pyramiding) can further be used during Hourly pattern of our records. Suppose that the weekly & daily charts are in uptrend. We will enter a long position or an additional long position when the hourly chart gives us a buy signal. Suppose that the weekly & daily charts are in a downtrend. We will enter a short position or short position when additional hourly chart gives us a sell signal. This time limit will not be used to exit trades. It is only to improve the time of entry. For out we will use the signals generated in the daily charts.

Using multiple time frames to trade

Takes three lists of the same security. The first is a weekly chart. Next chart is the daily chart. A third scheme is a scheme hour.

We will now use the daily pattern of trade. We check the weekly chart for the weekly trend. Lest we assume the weekly trend is up. So based on this information we will trade only long positions in the daily chart.
We look for the opportunity to buy the daily chart and we see the hourly chart to enter a long position.

Now for entering additional positions we use buy opportunities in hourly chart. We will leave on the daily chart just because we were trading on the daily chart.

Similarly, it can be traded short where weekly charts are in a downtrend and daily chart generates sell opportunity. Additional positions are entered when selling opportunities are generated hourly charts.

For Day trading can be used Hourly, 15 min and 5 min charts here we trade the 15 min chart. Or we can use 15 minutes, 5 minutes and 3 minutes charts here we trade the 5 min chart.




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