Many traders dynamically change currency pairs in only one time period. This is a common practice. But a deep analysis of several time frames undoubtedly gives a more detailed picture of the ongoing trading. Imagine how true the assessment of a new acquaintance will be after one meeting? And it will become clear to you that using several time periods to make the right decision is much more productive. A currency pair simultaneously passes through several time periods. And it is useful for a trader to study them all in order to effectively conclude a profitable transaction.
It is best for the trader to postpone the decision until the fluctuations in all time periods equalize. The trading process and the movement of currency pairs in time frames are determined by the current trend of the chosen direction to increase or decrease rates. The dynamics of the movement of currency pairs is ultimately transmitted to the state of the securities market. Comparing the daily charts, you can notice how much the state of the trend has changed. Trading a pair above 200 SMA in the green line, you can see a gradual departure from the maximum performance. Observing the slow scholastics, the indicator shows a “bullish” look at the current position. The two midlines of the analytics chart are at a strong upward angle of the scholastic. The increasing distance between the lines in the diagram indicates an increase in the strength of the pulse.
Bullish or upward impulses indicate a desire to buy a pair with the coincidence of indicators on all time frames. Having ascertained the trend of the movements of the currency pair of interest to us, it is worth looking at what the graph of the lower time frame looks like. Their coincidence with the Daily will ensure fine-tuning our record.
Analysis of various hourly charts
- 4 hours shows moderate growth after a slight rebound.
- Scholastic shows a small pullback, but does not exclude an increase with a sharp bullish impulse.
- Check the hourly chart to select the input signal.
- The hourly chart mostly shows the ideal entry position.
Having found a bullish intersection in several timelines, we can talk about a steady trend in demand and optimal entry time for successful trades. An analysis of several time frames provides accurate information to obtain the most accurate data on the current state of the market trend. You should not enter into a deal without checking charts with a lower time frame. Having waited for the maximum compliance of long and short time frames, the trader ensures maximum trading performance.