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Chapter 23, Part III. Some Rules and Advanced Talks.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Jan 19, 2012.

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  1. Administrator

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    Part III. Some Rules and Advanced Talks. [​IMG]

    Some rules that will help you to deal with multiple time frames

    1. Don’t use more than 3 (preferably 1-lower and 1-higher) and no less than 2 (preferably and 1-higher) time frames constantly in your day to day trading.

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    2. Here we assume that you’ve already decided what time frame is your favorite. If not, here are some selections for you (higher-preferable-lower):

    - Monthly, Weekly, Daily;

    - Weekly, Daily, Hourly;

    - Weekly, Daily, 4-hour;

    - Daily, hourly, 5-min or Daily, 4-hour, 30 min;

    - 4-hour, 30-min, 5-min or 4-hour, 1-hour, 5-min;

    - 30-min, 5-min, 1-min


    Personally, my preferred composition is Daily, hourly and 5-15 min charts. So, let’s take a look what the purpose of different time frames in this selection:

    For Daily-hourly-(5-15)-min selection:

    3. All stuff at higher time frame is stronger than on the lower time frames – support, resistance, overbought, oversold etc…but simultaneously wider.


    4. Despite whatever selection you trade – you have to look at monthly and weekly time frames. Ignore the trend, but pay attention to support/resistance levels, overbought/oversold and patterns;

    5. The daily chart is the major chart for this selection, since it gives you the context – enter long, short or stay flat. Here is you have to pay attention to trend direction (buy or sell), support/resistance, overbought/oversold and patterns;

    6. Hourly chart – your preferred time frame. Here you have to watch for the trend, but only as confirmation of entry levels, support/resistance levels, patterns and profit targets. Ignore oversold and overbought.

    7. We use 5-15 min chart only for confirmation of particular entry points – ignore trend, support/resistance and oversold/overbought. Use patterns that confirm the entry point.
     
    #1 Administrator, Jan 19, 2012
    Lasted edited by : Oct 1, 2016
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