Once you have analysed each Trend and Trade time frames, you can put them all together to confirm a high-probability trading set up.
1)TREND CHART- The trend chart, as the name suggests, helps you identify the predominant trend you should be looking to trade with. If the currency pair in the trend chart is trending upward, you should be looking to buy the currency pair ONLY . If the currency pair in the trend chart is trending downward, you should be looking to sell the currency pair ONLY.Once you have identified the time frame you should be using for trend chart, all you need to do is determine what the prevailing trend on the chart is. You can use diagonal support and resistance levels or moving averages to identify the trend.
Once you have identified the trend, you now need to identify profitable trading (TIMING) signals.
2) (TIMING) SIGNAL CHART- The (timing) signal chart is your most important chart. It provides the trading signals that tell you when to look for buying and selling opportunities based on the trading methodology you use. You might use the following to pinpoint your entry and exit or timing signals. You can identify the trend and support and resistance levels. You can use the same technical indicator you use to generate your trading signals.
Using a (timing) signal chart in conjunction with a trend chart enables you to more accurately identify potentially profitable trade signals.In effect, the trend chart allows you to ignore the less-profitable half of the trading signals you see on your signal chart. Since these trading signals are going against the longer-term trend, they will most likely be unsuccessful. You need to determine exactly when to enter and exit your trades using your timing chart.
3) TIMING CHART- The timing chart, as the name suggests, helps you time exactly when you should enter and exit a trade. Every pip counts when you are a Forex trader so the more accurately you can identify your entry and exit points, the more money you keep in your account.
In Forex trading you should at least minimum utilize three time frames in your plan, edge and strategy. This will make trading a lot easier.
1)TREND CHART- The trend chart, as the name suggests, helps you identify the predominant trend you should be looking to trade with. If the currency pair in the trend chart is trending upward, you should be looking to buy the currency pair ONLY . If the currency pair in the trend chart is trending downward, you should be looking to sell the currency pair ONLY.Once you have identified the time frame you should be using for trend chart, all you need to do is determine what the prevailing trend on the chart is. You can use diagonal support and resistance levels or moving averages to identify the trend.
Once you have identified the trend, you now need to identify profitable trading (TIMING) signals.
2) (TIMING) SIGNAL CHART- The (timing) signal chart is your most important chart. It provides the trading signals that tell you when to look for buying and selling opportunities based on the trading methodology you use. You might use the following to pinpoint your entry and exit or timing signals. You can identify the trend and support and resistance levels. You can use the same technical indicator you use to generate your trading signals.
Using a (timing) signal chart in conjunction with a trend chart enables you to more accurately identify potentially profitable trade signals.In effect, the trend chart allows you to ignore the less-profitable half of the trading signals you see on your signal chart. Since these trading signals are going against the longer-term trend, they will most likely be unsuccessful. You need to determine exactly when to enter and exit your trades using your timing chart.
3) TIMING CHART- The timing chart, as the name suggests, helps you time exactly when you should enter and exit a trade. Every pip counts when you are a Forex trader so the more accurately you can identify your entry and exit points, the more money you keep in your account.
In Forex trading you should at least minimum utilize three time frames in your plan, edge and strategy. This will make trading a lot easier.