Hello All,
I wanted to ask the forum here for its opinion on multiple time frame trading. Now, when you look at the charts and it seems as if the Daily and the 4 hr or 1hr is pointing the same way, then the decision is very easy in that you trade in that direction. But my question is, is when you have a system or methodology of trading and the Daily and the 4hr or 1hr are going in the opposite direction, which side rules? That is, is the argument that the Daily chart shapes the direction and the trend of the earlier time frames, and that the longer timeframe will dictate ultimately where the direction of the currency will go? Or, is the argument swayed the other way where in reality it is the 4 hr frame that shapes what the dailies will look like so when there is a divergence in the two frames, the 4 hr (or the shorter timeframe) is the one that should be followed. Or , as a third, simply don't trade multiple time frames and stick to one timeframe as major pivots/support/resistance points on the longer time frames will ultimately show up on the shorter frames??
Thanks.
Take care,
THE HUN
I wanted to ask the forum here for its opinion on multiple time frame trading. Now, when you look at the charts and it seems as if the Daily and the 4 hr or 1hr is pointing the same way, then the decision is very easy in that you trade in that direction. But my question is, is when you have a system or methodology of trading and the Daily and the 4hr or 1hr are going in the opposite direction, which side rules? That is, is the argument that the Daily chart shapes the direction and the trend of the earlier time frames, and that the longer timeframe will dictate ultimately where the direction of the currency will go? Or, is the argument swayed the other way where in reality it is the 4 hr frame that shapes what the dailies will look like so when there is a divergence in the two frames, the 4 hr (or the shorter timeframe) is the one that should be followed. Or , as a third, simply don't trade multiple time frames and stick to one timeframe as major pivots/support/resistance points on the longer time frames will ultimately show up on the shorter frames??
Thanks.
Take care,
THE HUN