What Is Multi-Timeframe Trading?
Multi-timeframe trading means using different timeframes for analysis. For example, if you usually trade on a 15-minute chart, you might extend to frames like 5 minutes, 1 hour, or 4 hours.
The goal of this is to get a broader overview from larger timeframes while also capturing details from smaller timeframes.
However, many people approach this issue superficially, often listening or learning without truly understanding it deeply. For example, some trade on a 5-minute timeframe but frequently consider larger frames like 4 hours or 1 day. While this is not wrong, this approach may not be necessary.
To illustrate, imagine on a 5-minute chart, the price can move 4R (risk-reward ratio). But on a larger timeframe, this movement may only occur within a single candle. This means that the time and distance traveled may even be less than one candle in a larger timeframe like the daily chart.
Therefore, considering multiple timeframes can lead to confusion and fatigue, making you hesitant to execute trades.
The most important thing to remember is that the timeframe does not affect how the market moves. If you want to learn more about this issue, please chat 'OK' so I can share more information with you.
