Weekly Perspectives: Multiple Timeframe Trading

Uncategorized Aug 07, 2017

While traders like to make the difference between intraday and swing trading and sticking to one, I have had a hard time picking the trading style that worked for me.  


In the end, I developed an interest in a method that falls in the middle of those two trading styles previously mentioned - multiple time-frame trading. It consists, in my case, of looking for trade locations on a bigger picture (higher timeframe) and entering the market on a lower timeframe based on a defined trade setup.


In comparison to intraday and swing, multi-timeframe trading usually produces trades with a higher reward. That is due to the fact that the take-profit can usually be placed according to price targets on the higher timeframe.


I, however, like to take partial profits on my multi-time frame trades. A first take-profit is placed at R = 1 and a second take-profit is placed according the a price target on the chart. That usually results in a higher win rate and keeps the reward fairly high.


The key in this style of trading is to find a balance in trading only a select few timeframes. The trader that wants to trade everything will often end up stressed out and unfocused. I personally identify the zones I want to trade off the daily or weekly charts. I then go no lower than the 4hr chart to enter trades.


For more information on that trading style, I invite you to watch the following analysis videos:

Trading in a trending market: 

 


Trading in a sideways market: 

 

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