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Traders utilize varying time frames to speculate in the forex market. Usually, trend charts refer to longer-term time frame charts that assist traders in recognizing the trend, allowing traders to get a micro view of larger time frames, which can, in turn, confirm the trader’s original analysis of trade. Also, support and resistance levels are more significant on longer time frames.

After you have gained comfort on the longer-term chart, you can then look to move slightly longer in your desired holding times. There you can make a strategic decision to go long or short based on the market trend. In most cases, the trading time frame that you settle in to enter a buy or sell order is the time frame where the buy or sell signal is found from analyzing the different time frames.

How to perform multiple time frame analysis

Step 1: Check the Larger Time frame

Starting with the larger time frames first and checking them to see if there’s any potential trading setups forming.

Step 2: Switch to a Smaller Time frame

You would then return to your preferred time frame (or even lower) to make tactical decisions about where to enter and exit (place stop and profit target). Finally, you can find better entry and exit points.

Example 1--long trading

You can look at the four-hour chart to establish the trend. Price trades predominantly above the 200 MA and is moving upwards, hence the long trading bias.

AUDUSD four-hour chart exhibiting an upward bias

AUDUSD 30-minute chart showing ideal entry into the market

Then, return to the 30-minute chart. It allows you to get