Why We Trade Different Time Frame Charts
In this video:
00:29 – The benefits of trading multiple time frame charts
01:14 – Being flexible as a trader
01:55– Looking at your charts
02:19 – Trading examples from this week
03:25 – High quality trading setups on the H4 charts
03:55 – Live trades taken on the webinar
05:05 – Great results from different time frame charts
06:02 – Trading like this doesn’t require much time in a day
I’m gonna explain to you today why we choose to trade a variety of different timeframe forex charts. How it helps us and how it can massively help you to improve your trading results. Let’s get into that and more right now.
Hey traders! It’s Andrew Mitchem here, from The Forex Trading Coach with video and podcast #333.
The benefits of trading multiple time frame charts
And I want to explain to you about the benefits to you as a forex trader of looking at and trading multiple timeframe charts. So take a step back. Think about the trading, think about the charts, think about the market. It’s little bit like people and the market has different characteristics, different mood swings. It reacts differently to different events. You can never really predicts what’s going to happen. Different forex pairs react differently depending on the time of the day, day of the weeks, sometimes the month, different years. And you never really know which timeframe charts or which pairs are gonna react when.
Being flexible as a trader
So, as traders, we need to adapt, we need to be flexible and one other best ways that we do that and also that’s gonna help you to do that. Is to have the ability to look at a few different timeframe charts. Different charts also pick up those different mood swings, different characteristics of the market. They give you the ability to identify high probability setup trades. That if you start to just one timeframe chart. You would often missed out on. So it’s very important that you have that ability to adapt and to look at different timeframes.
Looking at your charts
You’ll notice when you go through the charts. You might find that one timeframe just looks really flat and really boring. Other timeframes on the same pair at the same time will be showing really good setups. Again, it comes back to that characteristic of the pair and the time of day that you trading or whenever it might be the month, etc. So that’s why it is very very important.
Trading examples from this week
I give a few examples of how we adapt to those changes and how we profit and benefit from that so it can help you. So just last night, I held my live client’s webinar. Hold them every 2 weeks, 2 hour long, live trading room sessions. The alternate week, Paul over in America holds the US session, but last night it was my turn. Had a great session lots of people on it. I showed my clients over 20 charts setup just from this week. That I’ve either taking myself, I’ve seen people post on our forum site or clients have emailed me showing me the results.
Over 20 charts just this week, just from the 4 hour charts. Absolutely amazing the 4 hour charts have been this week. Go and have a look at your MT4 Charts, your trading charts and look at the 4 hour charts across the variety of different timeframe charts from this week. You will find if you have decent trading strategy there been a lot of very very good setups.
High quality trading setups on the H4 charts
So I went through those last night and they said at least 20 of them. They were absolutely amazing charts, high reward to risk, high quality setups and they work beautifully.
So the 4 hour charts for some reason work really well this week. And on that session, we talked about how other timeframe charts have not been quite not so good this week. They have not really showing on the setups.
Live trades taken on the webinar
So on that session I also took a 1 hour live trade on the EUR/NZD sell trade yesterday. It got filled out at the market and hit the profit target within the webinar session itself. Took about 1 and a half hours and made a 1.6 to 1 reward to risk trade. So I risk half of 1% on that trade. I made 0.8% gain on my account just in an hour and a half, not bad.
On that session, I also took 2 12 hour chart trades. One of them ended up losing and got stopped out. The other one made a 2.1 reward to risk that was taken on a CND/CHF. Taken live on the webinar. So 1 lost, 1 made. Also this morning when I woke up, I saw that I had a trade that I took myself 12 hours prior also in the 12 hour charts that I’ve explained and showed to clients on that live webinar that made a 2.8 to 1 reward to risk. So of those 3 12 hour charts, 1 lost 2 gain still up massive percentage.
Great results from different time frame charts
So you can see that we have taken a 1 hour and taking 12 hour charts. I’ve also got a weekly chart that I’ve explained last week’s webinar and podcast, from the EUR/GBP that still in. That currently is at 1.3 to 1 and I also took a 6 hour chart trade on the GBP/AUD a sell trade on the webinar last night and that’s still in the market as well. A little bit of profit but not much right now as I’m recording this.
So you can see there of what we’re doing. We take a variety of timeframe charts. This month, August I didn’t see any trades on the monthly charts. This particular week, I saw no suitable trades on the weekly charts. Yet, I still got one in the previous week. The daily charts had a few setup this week but not that many, but then we’ve gone to other timeframe charts like the 12, the 6 and especially the 4 hour charts and to a lesser degree, the 1 hour charts. Have had a great setups.
Trading like this doesn’t require much time in a day
So what is that tell you? It tells you that you need to have a variety of timeframe charts. The ability to look at them. The good thing is the way we trade. Is it still doesn’t that you mean taking very much time of the day. But because yesterday, when the charts changeover for the daily charts, 5pm New York time. I could also look at the 12 hour, the 6 hour, the 4 hour, the 1 hour charts.
When I was on the end of the webinar yesterday, when the 12 hour charts changed over. It’s 5am New York Time. We look at the 12, the 6 ,the 4 and the 1. So 2 trades on the 12 hour chart, 1 on the 6 hour. Already had the 12 hour chart on another trade previously and took a one hour chart an hour before on the webinar as well. So, no very much time taken up high gains, high reward to risk. Low risk trades, shows what can be done and you need to adopt to the market conditions. Cause you never know next week the 4 hour charts may not show hardly any setups. You just don’t know.
So having that ability to scan through real quickly, different timeframe charts. When they changeover, when the candle changeover is what really help you.
So once, again this is Andrew Mitchem from the Forex Trading Coach. Look at different timeframe charts, look at different timeframe charts, look at currency pairs, different timeframe charts, different currencies. It will massively help your trading. Bye for now, see you this time next week.