Multiple time frame analysis, in simple terms, is to study the same currency pair trend in different time frames.
Remember, on our technical graphics, prices can be displayed in different time frames: daily, hourly, 4-hour, 15-minute, or even 1-minute!
This means that two different traders have their own different views on the trend of a currency pair, but their views may be correct.
Zhang San may see that the EUR/USD is showing a downward trend on the 4-hour graph, but Li Si sees from the 5-minute graph that the EUR/USD is only fluctuating up and down. And they may all be correct.
As you can see, this raises a problem. When they analyze the 4-hour chart, the chart sends out a sell signal, and when they observe the hourly chart again, they find that the exchange rate is slowly rising, which can easily confuse traders.
What should you do at this time?
To judge the exchange rate trend only by relying on the technical graphics of a single period, regardless of the trend of other periods?
Toss a coin to decide, should you buy or sell?
Fortunately, we will not let you graduate until you learn how to trade with multiple time frames.
First, we will help you decide which specific time frame you should focus on. Every trader should choose his own time frame for trading.
Second, we will also teach you how to observe the trend of the same currency in different time frames to help you make more valuable trading decisions.