Time frame is very important issue! Even, you can lose with a profitable trading strategy, if you are unable to pick up the right time frame! Yes time frame relies on traders trading strategy or method.
Ignored
Which time-frames do you prefer to use? The longer or the shorter ones?
Understanding Multiple Time Frame Analysis (MTFA) will help you understand Market structure and therefore help your trading decisions
The higher timeframes govern the lower timeframes, and the lower timeframes build the higher timeframes
The higher timeframe is your management timeframe and gives the trade signal
The lower timeframes are used to give lower risk entries and exits
So once you have a trade signal on your management timeframe -
Go to the lower timeframes for your entry (and exit )
An entry on a lower timeframe gives a lower risk entry - therefore you can increase your trade size for the same $risk if you had entered on the management timeframe
Any higher TF signal is 1st confirmed on the lowest TF, and if it is strong enough it will climb up though each higher timeframe until it reaches your trade management timeframe
You should always lookfor confirmation of your management TF signals (entry/exit) on the lower timeframes
If your entry signal is not strong enough to work its way up to the management timeframe
Then take an exit on the timeframe where it fails to progress
How do you decide when to move up to the next timeframe?
What do you use to define a trend? use that
When it happens on the next higher timeframe - move up to that timeframe
Keep doing this until you reach your management TF
Bottom line
The lower timeframes build the next higher time frame
But any higher timeframe signal is more important than the lower timeframes
If in doubt - always refer to the next lower timeframe to tell you what to expect on your higher timeframe
Sorry if the above is a bit disjointed - it was just a bit of light relief after a day at the computer
Hope it makes sense
Peter
