Why We Trade Multiple Time Frame Charts
#478: Why We Trade Multiple Time Frame Charts
In this video:
00:26 – How looking at different time frame charts will help your trading
01:01 – If we had focused on 1 time frame chart
02:14 – More trade examples
02:45 – More successful trades on my live weekly webinar
03:39 – A higher probability of overall success
04:06 – I’ll be interviewing Ben Clay at Blueberry Markets
I’m going to explain why we look at multiple time frame charts each day. Let’s talk about that and more, right now.
Hey there, traders, Andrew Mitchem here at the Forex Trading Coach with video and podcast number 478.
How looking at different time frame charts will help your trading
I want to explain why we look at different time frame charts and how it can really help you with your trading. This week’s a really good example, and this week we haven’t had a great deal happening on the longer time frame charts. We had no weekly chart trades, which is quite unusual. On Monday and again today, being Friday, we’ve had no daily chart trades. On Tuesday and Wednesday, we only had one daily chart trade, and on Thursday we had four. And of course, you cannot tell in advance what’s happening and why and what the market’s going to do.
If we had focused on 1 time frame chart
So if we had just focused purely on the daily charts this week and the weekly charts, we’d have had just six trades. However, we look at other time frame charts as well. But it doesn’t mean to say that you are taking lots and lots of time to do that because if you can trade once a day and have a look at the charts when the daily charts close, you can also look at the 12 hour charts, the eight hour and the six hour. That’s at 5:00 PM New York time. If you can also look at 5:00 AM New York time or any time after that, you can also look at two hour, four hour, six hour and 12 hour charts. And so because we take trades only at the close of a candle, I can quite easily trade once or just twice a day. It takes a maximum of 30 minutes to go through all those different time frame charts and give ourselves more trade setups.
Now, if you’re the sort of person that trades just one hour charts or just 15 minute charts or just daily charts, you are really limiting yourself because you don’t know what the market conditions are going to be. And that becomes quite a, not so much dangerous, but limiting factor on your trading.
More trade examples
So, some more examples. This week at the Wednesday, 5:00 AM time frame changeover, I’m on our forum site at that time. I posted five trades, two of them on the 12 hour charts and three of them on the six hour charts. Out of those five trades, four out of the five have been profitable, one’s still in and it’s in slight profit. So, so far we’re a hundred percent profitable success. One trade’s still to go on the 12 hour chart.
More successful trades on my live weekly webinar
And then last night, my time, on our live weekly European session webinar, which I hold, next week’s a US session webinar with Paul over in America, but I held the European session webinar last night, my time, European morning. And on that session I took two trades on the two hour charts. We took a New Zealand Swiss Franc two hour chart trade, which was very profitable, made a three to one reward to risk. Fantastic trade, hit the profit target in two candles or four hours. And I had a losing trade on the two hour US oil. So although one was profitable, the other lost, we’re still massively up because of our high reward to risk. But both of those were two hour charts.
I also took a four hour chart trade on the Australian Yen, and I took a six hour chart trade on the Euro Yen. Both were profitable, so three out of four profitable trades.
A higher probability of overall success
So it just goes to show, by looking at multiple time frame charts, you’re giving yourself a higher number of trades, a higher probability of success because you can fine tune to find the highest quality trade setup. So it’s really important that you don’t just limit yourself to just a handful of currency pairs or just one or two time frame charts. Be flexible because you have to be flexible because you don’t know what the market’s going to give you at that time. So, I hope that helps as a good lesson.
I’ll be interviewing Ben Clay at Blueberry Markets
Now next week, instead of making a video and podcast like this, I’m going to be interviewing Ben Clay at Blueberry Markets, and I’d like to offer you an opportunity to ask some questions to Ben and I can ask those questions on your behalf. So if you have any questions that you’d like to ask Ben at Blueberry Markets, about anything to do with trading or anything to do with brokerage, about them, about why they think they are a good broker, about anything, the way they operate, their history, anything at all to do with Blueberry Markets or anything to do with a broker in general, send me an email early next week to email@example.com. In fact, you’ll get this on your Sunday or Monday depending on where you live in the world.
If you can send me an email within the next 24 hours or so, would be fantastic, with your question for me, or questions for me, to ask on your behalf to Ben at Blueberry Markets. Next week I’ll be making a weekly video and podcast just like this, but it will be the live interview of Ben. I’d love to ask some questions on your behalf, things you’ve always wanted to ask a broker but maybe didn’t know or didn’t know who to ask. This is your opportunity. Send it through firstname.lastname@example.org and I’ll ask that for you next week.
Have a great weekend. Bye for now.