How to use multiple timeframes to improve your trading entries

hey hey what's up my friend so in today's video pose right it's all about understanding multiple time frame analysis so imagine this right have you ever you know for example say you're entering off the one hour time frame right so you you find and set up on the one hour time frame and then you think yourself hmm what is the higher time frame doing and then you start to look at the higher time frame you look at the monthly the weekly the daily look everything and you get confused right you start to doubt your own trading setup on the one hour time frame and then you know you simply don't trip because you have no idea what the higher time frame is doing should you be looking at the monthly weekly the daily the flower the twelve what should you be looking at so I think this is an issue that a lot of traders face so in today's video post I will basically break it down for you and explain to you how to actually define your higher time frame based on your entry time frame you're trading off so all this or more in this week's video post I'll see you there okie-dokie so what is multiple time frame so let me explain to you in a very layman manner right multiple time frames just imagine this right that it allows you to put on a pair of lenses to see or rather to zoom in right to see what price is currently doing right now as well as to put on another pair of lenses to zoom out and see what price is doing in the big picture so this is basically you know what multiple time frames allow you to do all right you can zoom in to see what is their current price section of the market I can zoom out to see you know what is it doing over the last few months or the last few years so all this can be achieved using multiple time frames so just to walk you through to understand how you know the candles actually form on the different time frames right so I'm just going to walk you through a very simple example for those of you who are unaware right let's say for example on the one hour chart right you can have say two candles looking like this right say this is the first candle this is a bullish candle or I say this is the open and this is the close all right and the second candle you have say you have a bearish candle length that looks like this right then close lower okay say it is the duck body you have this wick higher ed is the high of the candle and this is the low of the candle right so if one hour candle one hour can do so you can combine these two and make it a two hour candle which will look something like this you look something like this how you going to get the 2 hour candle picture is that you need to take the open of the first candle so this is the open right open let's let's you know just draw some dotted line to illustrate this is the open all right then need to take the high and the low the highest high and the lowest low between the two candles so what is the highest high and the lowest low between two between the two candles it is this over here right is the highest high between the two candles and this is the lowest low between the two candles so let's say you take the high over here right this is the high and it's the low so you bring up the low over here this is the low then after which the last thing you want is to pick the close of the last candle so this is the close right it close over here it open here and it close over here so you take this close over here and you draw here so you've got this four piece of information over here this is the high of the time period you're looking at so we are look at two candles over here it is the higher side between the two candles and this is the lower slow between the two candles this is the open right is the open over here and this is the close of this last kind over here so what you do is you can actually draw a new candle all right this is and this is the high right this is weak and this is another weak lower and then this would be a duck body over here because it has prices close lower from the open so you combine these two candles over here now you got this another candle over here and this is a two-hour candle right these two hour basically encompass the price section of the first candle over here and the second kind over here and these two candles over here are based on the one hour time frame the one hour time frame so this candle over here is then based on a two hourly candle okay so does that make sense right I hope now you understand know how the candles on the higher time frame comes about it's all based on the candle structure or rather the price on the lower timeframe okay so if you're unclear just take some time to digest this piece of information and to be honest I it took me pretty much a long time to figure this this concept concept right I'm a pretty slow slow learner to be honest so that's it let's move on so now how do you actually select your time frame to tree so this is an important aspect of trading right because often I've seen traders right they say for example they tell me if ray now I'm looking to enter off the five minutes time frame and I ask them okay so which time frame are you looking at as you're higher time frame you zero I'm looking at a daily timeframe and then to me that doesn't really make sense because if you are entering of the five minutes time frame then a daily is to use noise because it's too far away right you're trading right now in the now but you're looking at the big picture as your higher time frame that is pretty much irrelevant and similarly if you are looking to enter off they'll say the weekly timeframe all right and you go down to a lower timeframe to find an entry let's say you go down to the one hour time frame again it does not make sense because the weekly timeframe is way too far away from your entry time frame which is the one hour time frame so now the question is Rainer how do you find the right balance between your entry time frame and the higher time frame all right so let me share with you a technique right on how actually go about finding the right balance right is what I call a factor of four to six right this is something that I didn't came up with right I think I read it from Alexander elder and he shaped this technique that he used to actually classify his time frames so let me explain to you what is the factor of 406 let's say you're entering of the one hour time frame right a factor of four would be D four hour time frame right one multiply by four gives you four were right a factor of six would then be the six hour time frame so needless to say if you're entering off the one hour chart then the four hour time frame can be your higher time frame or the six hour time frame can be your higher time frame or even a five hour time frame can be your higher time frame because anywhere from a factor of four to six so this is how you go about selecting your higher time frame right before you can actually select your higher time frame you must know which is the time frame that you want to enter off in other words what is your entry time frame once you have defined your entry time frame then you can find or rather define your higher time frame so here's a few examples for you to look at right you have the 15 minutes in a one hour so you're entering of the 15 minutes time frame the one hour time frame can be your higher time frame if you're entering off the 1 hour time frame the forward time frame can be your higher time frame if your entries on a forward time frame then the daily time frame can be your higher time frame so hope you get the concept of this right a factor of 4 to 6 in selecting your higher time frame right so I hope this basically clears up on how to go about selecting your higher time frame right because it really right don't tell me that you know you're entering of the 5 minutes time frame and you trade off the higher time frame or rather you look the higher time frame as the monthly time frame that's not really make sense right it's way way way too far apart right you need to find the right balance and the right balance is using a factor of four oh six okay let's move on so now now that you know what is your higher time frame so what is the thing that you should focus on on the higher time frame all right you don't focus everything on higher time frame rather you only look at the current swing on the higher time frame because you want to trade with the current swing on the higher time frame what do I mean by this let me explain say for example you are looking at this chart over here say this is the currency the dollar against the Swedish Krona and you notice this say for example this is the higher time frame the daily time frame and you notice right price is pretty much you say you know looking not too good right BBC is a long term down track cause you have low highs lower highs and maybe low highs and we prize just retest this swing high over here so you're still not not looking too good going to draw a long-term trend line it's still pointing lower so what you do is that you know you tell yourself okay maybe I should be looking to shot but when you go down to the lower timeframe or rather your entry time frame your shot right you see this right price doesn't look bearish it out in fact it looks pretty bullish why is that well remember what I said earlier right I say that on the higher time frame you want to trade with the current swing on the higher time frame so what is the current swing on the higher time frame the current swing on this time frame is this portion over here alright this is the portion that you want to focus on so what is this portion doing is it bullish bearish or flip it's bullish right so if it's bullish then on your lower time frame you want to be long right so on this chart over here which is the lower time frame you want to be long down here I imagine vo you're looking to go short just because you saw that this higher time frame is looking no long term bearish and you're looking to go shot on this lower time frame chances are you're going to get stopped out repeatedly over time because you are going counter-trend to do to the trend on your current time frame okay so remember you want to focus on the current string on the higher time frame all right another example you see over here so you look at this chart I would agree view right it looks very dry you have a series of you know lower highs right lower lows all right it looks bearish but again you are not training the higher time frame right you are trading on your entry timeframe so if you are looking off the higher time frame you only want to focus on one thing what is the current swing on the higher time frame so if you ask me the current swing on this time frame is basically this portion over here this is the current swing so what is this current swing doing is it bullish bearish or flat it's bullish right this current swing right now is bullish so what should you be looking for in the lower time frame or rather in your entry time frame you will be looking for long try because on the higher time frame the current swing is bullish so you go down to your entry timeframe this example you see that it's looking bullish right so you're looking for a long setup over here okay so let's do a quick recap on what you've learnt today right first thing first I share with you know what is multiple time frame analysis and how it actually combined the different candles on the lower timeframe informal new higher timeframe candle then I share with you how to use a factor of 406 to actually define your entry timeframe in higher time frames and last but not least I share with you on why you need to focus on the current swing on the higher time frame right view if you're not focusing on the currency and you're looking you know there in a big picture then you're going to get confused alright because I would say anything outside of the currency on the higher time frame is basically noise the only thing they should focus on on the higher time frame is to look at what the current swing is doing is it bullish is it bearish or is it just simply flat right it's flat then of course there's no there's nothing to do so is there if it's bullish or bearish then chances are you want to trade along the path of least resistance right it is bullish you look for long setups on the load on your entry timeframe if it's bearish day you look for setups on your entry timeframe does it make sense okay so I hope you find this video useful right if you have any comments or feedback feel free to leave it in the comment section below and for those of you who do want to miss this kind of you know video post I do on a regular basis feel free to hit the subscribe button below with that I wish you good luck and good trading talk to you soon

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