Why Look at Multiple Time Frames When Trading Forex？

Chapter 1 Why Look at Multiple Time Frames When Trading Forex？

Why Look at Multiple Time Frames When Trading Forex？-Pic no.1

Multiple time frame analysis is simply the process of looking at the same pair and the same price but on different time frames.

Remember, a pair exists on several time frames – the daily, the hourly, the 15-minute, even the 1-minute.

Why Look at Multiple Time Frames When Trading Forex？-Pic no.2

Many new traders who use only one time frame will likely miss something.

For example, you won't see an important support or resistance level that would be evident if you gaze at a higher timeframe. Or more simply, the market may seem very different on different time frames. It can be a downtrend on 5-minute chart and an uptrend on 1-hour chart.

Here is the 5-minute chart of XAUUSD from 19:00,May 28, 2020 to 4:00, May 29, 2020.

Why Look at Multiple Time Frames When Trading Forex？-Pic no.3

We can