Multiple time frame analysis is simply looking at two or more price charts for the same Forex currency pair or cross or other instrument, at the same time. You make a multiple time frame analysis by looking first at a higher time frame and using that chart to determine whether the price is trending and if so, in what direction or ranging, and also maybe to identify clear support and resistance levels.

It is a top-down analysis, because once you have that information from the higher time frame, you then use a lower time frame to trade from that analysis, which will usually get you more precise trade entries and exits which should maximize your reward to risk ratio. There are a few good Forex trading strategies which have historically been profitable on the weekly time frame, outlined below. You can use a shorter time frame as a tool to trade these strategies more effectively. The results detailed below are from back tests conducted on sixteen major and minor Forex currency pairs over a very long period of almost 20 years, from to Thousands of samples were taken, increasing the statistical validity of the back test.

When a Forex currency pair or cross ended a week at its highest or lowest weekly close for 26 weeks equal to 6 months , in However, on average the next week closed against the trend by 0. If we take only the USD currency pairs from the above example, in On average, the next week closed further in the direction of the trend by 0.

Although this second statistic is not encouraging, by use of a relatively tight hard stop loss, trading long-term breakouts in USD currency pairs could be made into a profitable trading strategy, but you should use a shorter time frame to make your trade entries and exits more profitable. Next week, look for short trades on a shorter time frame such as the hourly or 4-hour time frame. This strategy and all the following strategies rely upon mean reversion.

You trade mean reversion just by waiting for a turn of direction back towards the average and opening a position targeting the average. On average the next week closed with the trend by a further 0. If we take only the USD currency pairs from the above example, the results do not improve. There are also two weekly trading strategies with good track records which can more safely be used with only the weekly time frame. These strategies produce trades which are meant to be entered just as a week ends, and held until the same time next week, without a stop loss.

This can of course be traded more precisely by using a shorter time frame as well. By dividing its closing price by its opening price, we see the result is more than 1. You could either just enter long here just before the week closes, or next week, look for long trades on a shorter time frame such as the hourly or 4-hour time frame. This strategy is exactly the same as the previous strategy, just without the trend element.

Then you enter a trade in the opposite direction and sell at the end of the next week, regardless of the trend. In On average the next week was a winner by 0. Forex traders will find they can trade much more profitably by using the weekly time frame to find trending or ranging conditions, and then trading in line with those conditions by drilling down to a shorter time frame to execute precise entries and exits.

The 4-Hour or 1-Hour time frames are ideal. In Forex, trends tend to be most accurately identifiable over 3 months and 6 months. Which timeframe is best for weekly trading? If you are going to trade once per week, the best timeframe to use on a price chart is either the weekly timeframe, or the daily timeframe if you trade early in the week.

Should you wait for the candle to close? In trading, it is usually a good idea to wait for a candlestick to close before entering a trade on any time frame.

This is because the closing price is likely to be a price area where the price has been able to spend some considerable time, making the entry more likely to be valid. The weekly time frame in trading is a price chart which has been customised to show weekly candlesticks or price bars, so each candle or bar represents one week of time on the X-axis.

You can also trade with the long-term trend when the weekly close makes a multi-month high or low price, which is more of a breakout trading style. How do you trade weekly highs and lows? The best way to trade weekly breakouts is to wait for the highest or lowest weekly close in at least 13 weeks, and to treat that as a valid breakout if the weekly close is very near the high or low of its price range. If it is, this suggests the breakout has attractive momentum sufficient for a trade entry with good positive expectancy.

Adam Lemon began his role at DailyForex in when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. He has previously worked within financial markets over a year period, including 6 years with Merrill Lynch. Learn more from Adam in his free lessons at FX Academy.

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Why You Should Use the Weekly Time Frame in Forex Trading How to Measure Trend with the Weekly Time Frame Should You Use Only One Time Frame in Forex Trading? Home Forex Articles Trading Strategies How to Use the Weekly Time Frame in Forex Trading.

How to Use the Weekly Time Frame in Forex Trading Adam Lemon. on February 28, Why You Should Use the Weekly Time Frame in Forex Trading. You can see how cleaner this price structure looks which gives you a better view of what price is doing.

Notice at the bottom of the consolidation, there is a test of lows and price trades back inside. This is the failure test of lows we look for in our setups as an entry technique.

You can see the little triangle on the right of that candlestick which is my trade entry. The red line is the current stop location. Everything else stays the same. From price patterns to how to enter and stop placement, nothing changes regardless of which time frame we use. That applies to any chart from a 5 minute chart to a daily, weekly, monthly. Take the EURUSD for example.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use. WEEKLY OVERVIEW on US Index and Forex Long. TradingKitchen Pro. FX:USDCAD U. supplyanddemand mtfa volumestudies spx nasdaq nas gold usdchf eurusd usdcad liquiditytrader smartmoneyconcept.

Hi Traders, This is my view for this week on: - SP and NAS - XAUUSD - USDCAD - EURUSD - USDCHF I remind you that this is only a forecast based on what current data are. Therefore the following signal will be activated only if specific rules are strictly respected. I really hope you liked this content and I would like to know what do you think about this analysis, so please use the comment section below to give me your point of view.

All the contents, suggestions, strategies, videos, images, trade setups and forecast, everything you see on this website and are the result of my personal evaluations and was created for educational purposes only and not as an incentive to invest. Do not consider them as financial advice. WEEKLY OVERVIEW on US Index, EURUSD, USDCAD and GOLD TradingKitchen Pro about NAS

That level also aligned perfectly with support at the week moving average , significantly raising odds for a bullish outcome. Key Takeaways Following a weekly schedule tends to be more effective than a shorter-term system when you're trading on the forex market. Some Forex brokers impose a time limit on the duration of trades , forcing you to close an open trade after it has been open for typically a few weeks or months. As trend followers one of the hardest parts of managing a trade is sitting there and watching some of your hard earned profits be returned to Mr. Dialog Heading.

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