Broker LiteFinance analysts have pointed out that the strategy of technical analysis on three time frames has become very popular among traders.
Thanks to this method of analysis, you can react immediately to any changes in the market situation and price jumps, which makes your trading strategy more flexible.
Using time frames of 5 minutes, 15 minutes, and 30 minutes allows you to successfully determine the direction of the trend, making this strategy one of the most popular and reliable for day traders. How it works: the main trend is determined on the longer timeframe and then confirmed on shorter timeframes.
LiteFinance experts have published an article about the strategy of trading on three timeframes, where the following topics are covered:
- What is multi-timeframe analysis?
- Determining the main trend
- Determination of the current market bias
- Entry and exit rules
- Trading on 3 timeframes in the forex market
- Best combinations of timeframes
- Indicators for trading on multiple timeframes
Multi-timeframe analysis is a strategy of technical analysis that involves searching for potential market entry points based on mutually confirming signals from three timeframes at the same time. A combination of 30-minute, 15-minute, and 5-minute timeframes is often used in intraday trading.
The popularity of this strategy is due to the fact that traders receive multiple signals to enter the market throughout the day. This is convenient for traders with small deposits.
However, it should be noted that this strategy requires constant monitoring and does not allow trading with pending orders.
LiteFinance is a high-tech company that constantly offers innovative solutions for active and passive trading. The LiteForex group of companies was founded in 2005 and, since then, has become a market leader. Today, LiteForex (LiteFinance) is an online ECN broker with unique technical solutions for transferring transactions to interbank and directly to liquidity providers.
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