- CFD trading
- CFD trading
- Markets
- Markets
- Products overview
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Our spreads
- Funding & withdrawals
- Open CFD account
- Try free demo
- Platforms
- Platforms
- Platforms overview
- GO Markets trading app
- MetaTrader 4
- MetaTrader 5
- cTrader
- cTrader copy trading
- Mobile trading platforms
- GO WebTrader
- Premium trading tools
- Premium trading tools
- Tools overview
- VPS
- Genesis
- Share trading
- Share trading
- Invest in shares
- Invest in shares
- Trade ASX shares and ETFs
- Share trading platform
- Log into share trading
- Open share trading account
- Help centre
- Downloads
- Downloads
- iOS app
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Earnings announcements
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Client support
- Contact us
- FAQs
- Quick support
- Holiday trading hours
- Maintenance schedule
- Fraud and scam awareness
- Legal documents
Open Account
CFD trading
Trade CFDs on forex, commodities, indices, and more.
Open accountTo open a CFD trading account as a Company, Trust, or SMSF, apply here.
Share trading
Invest in shares and ETFs on the Australian share market.
Open accountOpen a Personal or Company/Trust/SMSF share trading account.
- CFD trading
- CFD trading
- Markets
- Markets
- Products overview
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Our spreads
- Funding & withdrawals
- Open CFD account
- Try free demo
- Platforms
- Platforms
- Platforms overview
- GO Markets trading app
- MetaTrader 4
- MetaTrader 5
- cTrader
- cTrader copy trading
- Mobile trading platforms
- GO WebTrader
- Premium trading tools
- Premium trading tools
- Tools overview
- VPS
- Genesis
- Share trading
- Share trading
- Invest in shares
- Invest in shares
- Trade ASX shares and ETFs
- Share trading platform
- Log into share trading
- Open share trading account
- Help centre
- Downloads
- Downloads
- iOS app
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Earnings announcements
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Client support
- Contact us
- FAQs
- Quick support
- Holiday trading hours
- Maintenance schedule
- Fraud and scam awareness
- Legal documents
- Home
- News & analysis
- Trading Strategies, Psychology
- Optimising trading strategies by using multiple timeframe analysis
- Home
- News & analysis
- Trading Strategies, Psychology
- Optimising trading strategies by using multiple timeframe analysis
- Determine your standard trading timeframe.
- Work back usually by a factor a factor of 4/5 or by a logical time frame adjustment
- Add in Support and Resistance Lines on longer term time frames
- Revert to trading time frame and redo the same process highlighting convergences
News & analysisNews & analysisOptimising trading strategies by using multiple timeframe analysis
3 October 2022 By GO MarketsMany trading strategies utilise technical analysis to predict price patterns and for entries and exits. These strategies revolve often begin with the idea of the price having identifiable support, resistance and trendline market structures which indicate where various buying and selling points can be placed for a trade. These support and resistance indicate far more then just the price at a moment in time. Rather they reflect the psychology of the market at a given point in time.
However, when trading it is important to remember that the market is not just made of one type of trader. The market is made up of day traders, swing traders, scalpers, funds, hedge funds, retirement funds, Investment banks and all in between. Each of these participants has their own time frame for a trade/investment. This element is the key as to why trader can utilise multiple time frame analysis. The theory it that the more market participant who view the respective level as a support or resistance, the more likely it will act in that way.
For example
Assume that the price of stock A is sitting on a 5-minute support at $100. Looking purely at this 5-minute chart a trader may look to buy on this support level.
However, after looking at the 30-minute chart, the chart shows that the price is not actually a support but rather just a random price point and therefor no trade is entered.
Alternatively, the 30-price chart supports the original price as a support and therefore may support the price point being a support point.
How to implement multiple analysis into your trading.
This step should be a relatively simple step if you have a clear edge. For some traders it can be 5 minutes, 15 minutes, 1 hour, one day or even one week.
Prior to your first drawing of support resistance and trendline it is important that you adjust the timeframe of your price chart by a factor of 4/5 or a by logical adjustment such as an hour – to a day or day to week.
Example
5min – 30 min
1 hour – 4 hours
1 hour – day
1 day – 1 week
1 week – 1 month
The analysis can now start, and the key is to draw the most obvious and consistent support and resistance time frames. This step also serves an important step in helping determine if the price is trending or is ranging.
The next step is to revert to the desired trading time frame and conduct the same process. This time if there is a Support/resistance line that is already made and acts as one on the shorter timeframe, highlight it or tag it.
Looking at the example below for US car making company Tesla, the process is shown on the chart below. Firstly, with the weekly chart, support and resistance points were plotted with the black lines.
The below the daily chart shows that the support point at $265.25 acts as support for both timeframes. This indicates that price may act with more strength as a support zone. Similarly, if the level breaks it may indicate a more powerful move because more market participant will likely be involved.
In the other example for the EURUSD the same process has been done and shows that the price at 0.9600 is also doubling as a support on the daily and weekly charts.
The use of multiple time frame analysis can optimise trading systems by reducing risks of fake breakouts and improving entry and exit accuracy.
Ready to start trading?
The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.
#ForexStrategy #ForexTrading #ForexTraining #ForexCourse #ForexEducation #ForexHelp #ForexAnalysis #FXSignal #MetaTrader #MetaTrader4 #MetaTrader5Next Article
Tesla sets a new record
Tesla Inc. (NASDAQ: TSLA) reported its Q3 2022 delivery numbers on Sunday. World’s largest automaker delivered a total of 343,830 cars (up by 42.49% year-over-year) in the third quarter – setting a new quarterly record. The deliveries in Q3 consisted of: 18,672 Model S/X 325,158 Model 3/Y The automaker produced 365,923 vehicles...
October 4, 2022Read More >Previous Article
Natural Gas getting ready to test important level
Natural Gas prices have had a volatile year to say the least. After finding multi decade highs on the back of geo-political volatility and record high...
September 30, 2022Read More >Please share your location to continue.
Check our help guide for more info.