The importance of multiple time frame trading(It helps me hold my position for weeks)
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Thread: The importance of multiple time frame trading(It helps me hold my position for weeks)

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    The importance of multiple time frame trading(It helps me hold my position for weeks)

    I will be sharing my experience on how I hold my positions with the help of multiple time frame trading.

    I trade the Daily, weekly and monthly time frames only.

    On the GBPUSD chart on the screenshot. I took the short trade setup known as a bearish engulfing pattern that formed with a bollinger breakout. Such setup is known to me as a strong set up plus it formed at a resistance level of 1.57856 But then, there was a support level very close which is slant.

    My initial stoploss was around the resistance level of 1.57856. Good a thing, the next day, the next candle broke the support level. I was happy and I moved my take profit lower making it x6.7 of my stoploss. thus 1:6.
    GBPUSDDaily2.png

    Now let me explain what gave me the courage to hold my position for long.

    Switching over to the weekly time frame. The bollinger middle band was broken.
    GBPUSDWeekly.png
    Note that the Bollinger middle band is a 20 simple moving average. It usually serves as a support or resistance level as the case may be. SO therefore on the weekly chart, the middle bollinger band got broken, which literally means to me that the price will continue going down.

    Now let me show you how the monthly time frame helped me on holding the position. The bollinger middle band on the monthly time frame acted as a resistance level thus not allowing the price to go above it. But then there is a strong bullish reversal signal formed on the monthly time frame by 2015.03 and 2015.04 candle.
    GBPUSDMonthly.png
    Therefore to me, GBPUSD might reverse when it reached the 1.49870 level which is where my ultimate 1:6 take profit is. It might reverse there or break below it, we can not tell what the market will do. but then this is how the mutiple time frame helps me on holding my position for long and making about 1:10 risk to reward sometime..


    Please note that this is for education purpose. PLEASE don't open any position based on my supposed educational tips. I decide to share this for others who makes use of bollinger band to learn how they can make analysis with it.

    Hope my thread adds more knowledge to your already existing trading knowledge.

    Thanks.

    Also, I now use the BOLLINGER BAND. It is a good indicator when used rightly.

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    This is lovely to read, i have being trying to see someone who do trading like this, it is qualifying you to be a good trader, except i have not seen your trading results yet for me to confirm what you are getting. apart from this, it is a good explanation and i know that this will work for a serious using, and traders should try to work with high time frames.

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    This is a good thread sir, I see things clearly with the higher time frames as well. I am using the 4 hours, 1 day and 1 week trading chart, this is similar to yours as well. And I am using that because I do not want to lag because I see that the 1 month trading chart is lagging than others. Well, I can see that you are okay with this trading system, and I hope you have the best in the future with it.

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    Quote Originally Posted by cozard007 View Post
    This is a good thread sir, I see things clearly with the higher time frames as well. I am using the 4 hours, 1 day and 1 week trading chart, this is similar to yours as well. And I am using that because I do not want to lag because I see that the 1 month trading chart is lagging than others. Well, I can see that you are okay with this trading system, and I hope you have the best in the future with it.
    Yeah, the higher time frame is good, well the trade reversed on an anticipating level and I closed my position in profits as well. Therefore I think the longer time frame works the best too when we can make good trades and analysis.

    Quote Originally Posted by silverlady View Post
    This is lovely to read, i have being trying to see someone who do trading like this, it is qualifying you to be a good trader, except i have not seen your trading results yet for me to confirm what you are getting. apart from this, it is a good explanation and i know that this will work for a serious using, and traders should try to work with high time frames.
    I think the trading result you are talking about is the trading payment proofs. Well, be patient friend, I will do that when it is the right time. I like taking it slow.

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    Quote Originally Posted by cozard007 View Post
    This is a good thread sir, I see things clearly with the higher time frames as well. I am using the 4 hours, 1 day and 1 week trading chart, this is similar to yours as well. And I am using that because I do not want to lag because I see that the 1 month trading chart is lagging than others. Well, I can see that you are okay with this trading system, and I hope you have the best in the future with it.
    high time frame makes traders to know forex business better than others. i do my trading with this too, it is not easy to trade with the smaller time frames, they will not bring out money for the traders and they will not give the trader rest of mind while trading as many market will be emerging.

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    Quote Originally Posted by silverlady View Post
    high time frame makes traders to know forex business better than others. i do my trading with this too, it is not easy to trade with the smaller time frames, they will not bring out money for the traders and they will not give the trader rest of mind while trading as many market will be emerging.
    You are spot on, I think we need to do business with calm mind, therefore the higher time frame helps us to trade that way. The stoploss is hardly triggered compared to the lower time frame. Therefore the higher time frame gives little opportunity while the lower time frame will give us so many opportunities but then will end up making us loss our money.

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    areas of support and resistance work best if they are followed from a bigger time frame but so many traders dont have the patience to wait for a trade on the monthly chart or to hold on to a trade for such a long time me included so i only trade on either the four hour chart or the daily plus the risk is so high

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    Quote Originally Posted by kagho View Post
    areas of support and resistance work best if they are followed from a bigger time frame but so many traders dont have the patience to wait for a trade on the monthly chart or to hold on to a trade for such a long time me included so i only trade on either the four hour chart or the daily plus the risk is so high
    yes, i see this working for every trading strategies too, the bigger time frames is working best when it is approached better by traders of forex business. we can do better with anything that is working based on support and resistance with higher time frame, it is an opportunity for traders.

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    Quote Originally Posted by kagho View Post
    areas of support and resistance work best if they are followed from a bigger time frame but so many traders dont have the patience to wait for a trade on the monthly chart or to hold on to a trade for such a long time me included so i only trade on either the four hour chart or the daily plus the risk is so high
    It is true, not even the support and resistance alone, it is applying to all the trading system I know in the market, they are better layer with the higher time frames, and this will reduce the risk of entering too many traders that is wrong for the trader. I believe in the use of the 4 hours time frames among my high time frames, and that is the lowest I use.

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    In my opinion that the trading according to the charts can be very good and can be waste of time at the same time . when we trade the charts we do not regard the news . but when we trade the news a we may be closer to the fact of the trading . and we have to find more details about the making of the trading strategies .

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