In today forex faq, I shall be sharing with you a question that most of you should have asked when trading.
Below is the question:
I have been following your blog for the last 2 months. I must say that I have learnt a lot since I started reading from your site. Now this question I need to ask you about is the time frame when you trade. That is every time before you enter a trade you want to view different time frame for your fibonacci support/resistance; Macd; Stochastic and moving average crossing. Now which of the time frame should I go before I decide to enter the trade as they all show different information. Please advise.
When you are trading, you must be using several different time frames. There must be time when they show different signals on different time frames and this will usually make you very confused as to which one should you trade based on.
What I am sharing with you here is my personal trading style and is the personal opinion of myself.
As I am aware of this problem when I first started trading a few years back, I decided to fix a time frame as my opportunity searching time frame and a time frame for my entry.
For me, I use the higher time frames as a way to have a big picture of the market movement. I then use the 15 minutes chart to look for trading opportunity. Once I got a signal to enter, I will zoom down to the 5 minutes chart to get me a good entry position.
I will not plot the same indicators on all time frame, I will plot the indicators on the 15 minutes chart where I look for trading opportunity. Once the indicators are aligned giving me a good entry signal, I will move down to the 5 minutes to look for entry position.
If you plot all the indicators on all time frame, it will be very hard to get a trading opportunity as you need to wait for all the time frame to align which is very hard.
So my personal suggestion for you is to fix a time frame for your trading opportunity and another one for your entry. This will make thing more simple, the key to success is simple.
For those of you who are still having problem with your technical analysis, I have written a book to show you exactly how I do my technical analysis and you can take a look at it here.