DislikedJim... Using multiple frequencies is like using a zoom lens... you zoom in/out.
If the daily candle is green and the 60 minute candle is red, entering LONG is NOT going to make it easy to rake pips.
If the daily candle is red and the 60 minute candle is green, entering SHORT is NOT going to make it easy to rake pips.
Candle color tells you whether the buyers ( green team ) or the sellers ( red team ) have momentum.
Basically, this is saying trade when the colors line up. Wait or exit when they don't.
Look at the GBPUSD chart... Daily candle ( bottom candle ) is RED and the current 60 minute candle ( top candles ) is RED. But do you see that the previous 60 minute candle is GREEN and the current 60 minute candle started GREEN.
Had you gone short on GREEN, YOUR PIPS would have been raked away.Ignored
Excellent clarification, pipraker.
thank you very much
Indicators show the past. Price Action "Indicates" the future.