Confused when looking at multiple time frame, what should you do?
Multiple time frame analysis is challenging but a critical to forex trading
That’s one question that I received a lot, but also a problem that I face too!
Few things to help to rationalise my mind:
1. Switch to a clean chart with price only
2. Switch to a higher time frame, if you make no head or tail in D1, then switch to weekly. If still canot, then switch to monthly. The key question we want to establish in higher time frame is always: is price now supported or resisted? If support, I want to buy. If resisted, I want to sell.
Once you have formed your opinion, in the above case, DAX30 is near to resistance, we are looking for a sell.
Then you can go to H4 to find supporting evidences for a sell.
Trade management is very important.
If you are wrong, don’t be discouraged. Cool your mind, go back to drawing board and look at it again.
The market is full of cons. But I’m sure there are still good guys out there!