HotForex’s Senior Currency Analyst Stuart Cowell explains what is multi time frame analysis and how we can identify support and resistances easily.
What is multi time frame analysis?
1. Following a market in at least two time frames or resolutions
2. Defining the dominant trend in higher time frames and timing entries in smaller time frames
3. Using a Top Down approach. it helps us to focus on the dominant trend and trade with the prevailing momentum
4. Using A) the longest time frame for identifying major S/R levels and trend, B) the intermediate resolutions for confirmation of the long terms analysis and recognizing important pivot points, and C) the smallest timeframe for entry signals
Cowell also explains what are price pivots: Pivotal highs and lows and how to identify when a market is trending. What to do in uptrends and how to take profit of downtrends; timing in short and long
Editors’ Picks
EUR/USD remains weak near 1.1800
EUR/USD remains on the back foot on Thursday, trading close to the 1.1800 support ahead of the opening bell in Asia. The pair’s pullback comes amid further gains in the Greenback, while investors keep assessing the ECB’s decision to leave its policy rates unchanged
GBP/USD falls to new lows near 1.3530
GBP/USD extends Wednesday’s pullback on Thursday, easing lower towards two week lows around the 1.3530 area. Ongoing strength in the Greenback and the dovish hold from the BoE at its earlier meeting are keeping demand for the British Pound on the defensive for now.
USD/JPY strengthens to two-week high near 157.00 ahead of Japan snap election
The USD/JPY pair gains momentum to a two-week high near 157.00 during the early Asian session on Friday. The Japanese Yen remains under selling pressure against the US Dollar ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
AUD/USD remains offered below 0.7000
Broad based selling across risk sensitive assets is weighing on the Australian Dollar on Thursday, with AUD/USD adding to Wednesday’s pullback and slipping back the key 0.7000 handle as the US Dollar extends its advance. Looking ahead, the next domestic focus in Australia will be the Household Spending figures on February 9.
USD/JPY strengthens to two-week high near 157.00 ahead of Japan snap election
The USD/JPY pair gains momentum to a two-week high near 157.00 during the early Asian session on Friday. The Japanese Yen remains under selling pressure against the US Dollar ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Gold fails to sustain gains above $5,000 for third consecutive day
Gold is back under pressure on Thursday, slipping back towards the $4,800 region per troy ounce. A firmer US Dollar is weighing on the yellow metal, even as the broader mood remains risk off. That said, falling US Treasury yields across the curve are helping to cushion the downside and, for now at least, are limiting the depth of the pullback.
Ethereum plunges below $2,000 as funding rates return to negative territory
Ethereum has broken below $2,000 on Thursday, extending its decline to about 30% over the past week. The move follows a crash in Ethereum's funding rates, which have returned to negative territory after briefly flipping positive.
The AI mirror just turned on tech and nobody likes the reflection
Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.