As we have already spoken, the most common practice with multiple chart trading is ignoring everything that I told you here over our lessons and trading without them.
No. I am of course joking.
A lot of traders actually make a fortune by following this advice, so you better stick to my words.
So, the most common practice is to trade three time frames. You might mix and match like this:
- 1-minute, 5-minute, and 30-minute;
- 5-minute, 30-minute, and 4-hour;
- 15-minute, 1-hour, and 4-hour – the most popular and working one;
- 1-hour, 4-hour, and daily;
- 4-hour, daily, and weekly and so on.
The longest one here is going to help you see a trend more clearly.
The medium one is going to get you closer to the entry point as well as going to help you see the situation in which you are going to trade closer and better.
The shortest one is going to give you precise information about perfect entry point and it is better used with some kind of oscillator.
Be sure that your time frames are not too closely together, otherwise you are not going to be able to tell the difference.
Also remember that time frames need to be chosen in the way so that the smallest movements on the smallest time frame are not going to reflect on larger scale.
And that is how you trade multiple time frames.