Multi Time Frame Analysis
In forex trading, the time frame is a feature in the trading platform that functions to group price movements in a currency pair based on a certain time period displayed on a chart or graph. On some popular trading platforms such as Metatrader 4, there are several time frames that traders can use to monitor price movements to determine when transactions are made. Among them:
M1 (1-Minutes)
M5 (5-Minutes)
M15 (15-Minutes)
M30 (30-Minutes)
H1 (1-Hour)
H4 (4-Hours)
W1 (Weekly)
MN (Monthly)
If the trader currently has Metatrader 4 on a smartphone or PC/laptop, then the chart that the trader uses is a candlestick, then the trader can see that each candle is a representation of price movements based on time frames (minutes, hours, weeks, and months). ).
Multi Time Frame
Multi time frame analysis is a process carried out to see price movements in a currency pair in different time periods. Although in practice there is no maximum limit on how many time frames to observe, in general, this multi time frame analysis involves 2-3 time frames to predict the direction and price movements in the forex market.
Then, what if the analysis carried out only uses one time-frame? or maybe even more than three?
If too few time-frames are used, traders will have difficulty understanding market conditions due to insufficient data.
Conversely, if too many time-frames are used, it will result in an analysis that is too complicated so that traders have difficulty understanding the conditions that are happening in the market.
Therefore, professional traders will usually only use 3 different time-frames in their analysis so that they can get a fairly broad picture of the current market conditions.
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