Индикатор Форекс Slope Multi Time Frame

How install MT4/5 indicator in the terminal?

To install an MT4/5 indicator in the terminal, follow these steps:

1. Download the indicator file (.ex4 or .mq4/.ex5 or .mq5) to your computer.

2. Open the MT4/5 terminal and click on &#;File&#; in the top left corner.

3. Select &#;Open Data Folder&#; from the dropdown menu.

4. In the window that opens, double-click on the &#;MQL4/5&#; folder.

5. Double-click on the &#;Indicators&#; folder.

6. Drag and drop the indicator file from your computer into the &#;Indicators&#; folder.

7. Close the data folder window and restart the MT4/5 terminal.

8. The indicator should now be available in the &#;Navigator&#; window on the left-hand side of the terminal. Simply double-click on the indicator to add it to a chart.

Note: If the indicator is in a .zip file, you will need to extract it first before following the above steps.

And if asks to confirm DLL?

If the indicator you are installing requires access to external Dynamic Link Libraries (DLLs), you may see a pop-up message asking you to confirm the use of DLLs.

DLLs are external libraries that contain code that can be used by other programs. In the case of MT4/5 indicators, they are often used to perform complex calculations or connect to external data sources.

If you trust the source of the indicator and want to use it, click &#;Yes&#; to confirm the use of DLLs. If you are not sure or do not trust the source, click &#;No&#; to cancel the installation.

It&#;s worth noting that some indicators may not work properly without access to their required DLLs. If you choose not to allow access to DLLs and the indicator does not work as expected, you may need to reinstall the indicator and confirm the use of DLLs to get it to work properly.

Overview

Many traders are monitoring multiple timeframes in their trading to get a better picture of where the market is heading for. For example, if you are trading a 5 min chart you might want to monitor the 15 min and 60 min timeframes as well. If all timeframes are bullish then you only want to look for long trades. Vice versa if the trend in all timeframes is bearish you would only look for short trades.

This indicator allows plots a moving average from another timeframe on the current chart. For example, in the screenshot above you see a  1 hour EMA and a min EMA plotted on a 5min chart.

You can choose from up to 13 different moving average types and of course, you can select the timeframe which should be used

Custom timeframe and moving average type

Adding a moving average from another timeframe is easy. Just select the time frame you want, the moving average type & period that's it.

Supports 13 Moving average types

Features

• Displays higher timeframe moving average
• Choose from 12 different moving average types
• Specify timeframe bar period and value
• optionally slope coloring
• works on any market
• works with any bar type
• works on any timeframe
• works on any NinjaTrader version 

Changelog

29 jan

• added mcginley moving average
  
• added option to specify how many bars to load from a higher timeframe
• switched to the new licensing server

12 June

Terms

All our indicators andpackagescome with

• a one-time fee only
• lifetime license for 1 pc (we offer 20% discount for 2nd licenses)
• includes free future updates
  

We also offer a % free 7-day trialof all our indicators allowing you to test our software before you decide to invest in it. Since you are able to test all our software before buying it all sales are final and non-refundable! 

Media

• Timeframe : Determine the period of the interval, if the timeframe is weekly then a new line will be fit at the start each weeks, by default "Daily"
  
• Mult : Multiplication factor for the RMSE, determine the distance between the upper and lower extremities
  
• Src : Input data for the indicator
  
• Plot Extremities : Logical value, if true then the extremities of the channel are plotted, if false only the midline is plotted, true by default.
  

OA Indicator.
The BBMA indicator can be used for all types of traders and in any Time
Frame. If you are able to run it with patience and discipline, then I think
you are now able to get consistent profits from your trading. Then, how

have you done so far in trading with BBMA OA?

Multi Time Frame Analysis is a method that uses more than one Time
frame to analyze prices in the forex market. The amount of Time Frame used
varies, but in the BBMA OA indicator, it is at least required to use at least 2 Time
Frames.
If you understand and observe price movements and the process of forming
candles on the market, a candlestick on a large Time Frame is formed from the
arrangement of several smaller Time Frame candlesticks . Look at the
example below. A candlestick in H1 Time Frame, consists of 4 constituent
candlesticks in M15 Time Frame. That means if 3 candlesticks in H1, there are 12
candlesticks in M15 Time Frame.

The process of forming a candlestick in a large Time Frame is also often called a
candle trip .From one Doji fruit that is formed on D1 Time Frame,
the seller and buyer strength levels will be searched for small Time Frames
such as H4, H1, and M Following analysis of the candle journey:

 1 candlestick in D1 Time Frame is formed of 6 candlesticks in H4

 1 candlestick in H4 Time Frame , formed from 4 candlesticks in H1

2
 1 candlestick in Frame Time H1 , formed from 4 candlesticks in M15
Time Frame. That means 1 D1 candlestick, or 6 H4 candlestick, or 24 H1
candlestick formed from 96 M15 candlesticks .

Take a look at the picture above, 1 candlestick in D1 Time Frame, able

Multi Time Frame Analysis with BBMA OA Indicator

If the basics and instructions in the Multi Time Frame analysis are clear, let me
explain the application to the BBMA OA indicator. With the analysis of Multi Time
Frame, the signals and setup in the BBMA OA indicator can be confirmed. The
analysis itself uses at least pieces of Time Frame. You can even use 6
frames at a time. So let's start the discussion in each signal and setup the BBMA
OA indicator.

3
Confirm Extrem
Let's repeat a little from the previous material, Extrem is the situation
when the MA 5/10 comes out of the Top or Low BB . A good extreme has
the following conditions:

 5/10 MA that exits BB.

1. Close Candle Reversal in BB or MA 5/

 There is a retest candle .

How do you confirm the signal Extrem when viewed from the Multi Time
Frame analysis? Extrem signal confirmation can be obtained when the
price in a smaller Time Frame shows a complete BBMA setup . Do not
believe? Try now to look at the chart and make sure. Or if confused,

please see an example of a comparison of the M15 vs H1 chart.

4
MHV confirmation
Occurs after Extrem, MHV (Market Lost Volume) is a condition when the price
is no longer able to continue its journey . In the BBMA OA indicator, MHV
occurs when the price cannot continue its momentum in the Top / Low BB. MHV
itself has many forms and is very difficult to recognize.
Then how to confirm the MHV signal when viewed from the Multi Time Frame
analysis? In a valid MHV signal, exactly one Time Frame below will be the
Extrem signal . Try to look at your chart or see the following eexample.

This can also mean, when MHV occurs and Extrem occurs in the Time Frame
below it, the Extrem can also be confirmed by a full BBMA setup.
Following is the MHV confirmation correction table.

5
CSAK confirmation
Sturdy Candlestick (CSAK) is the initial signal of price changes that usually
occur after Extrem and MHV. In the BBMA OA indicator, CSAK is also one of the
guides in determining where the market will move.
How do you ensure that a CSAK is valid? Just like MHV, you only have to observe
one Time Frame below it. Make sure that one Time Frame below does not
occur Extrem signal . The Time Frame sequence is the same as MHV.
In a valid CSAK, one Time Frame below will experience momentum in the
Top / Low BB, while the one experiencing Extrem is considered a failure and will
turn around.

Confirm Reentry
Reentry is an entry that you must have been waiting for now. There are 2 types
of Reentry at BBMA, that is, Reentry after CSAK, as well as momentum
Reentry. When viewed from the behavior of the candle, Reentry is
a pullback that occurs after the price breakout at the Support level and a
certain balance zone. In BBMA OA it is the same: Reentry only exists after
CSAK (price shift from Top to Low BB or vice versa), and CSM ( pullback that
occurs after the breakout of Top / Low BB).
Then what about Reentry confirmation with Multi Time Frame analysis? For
Reentry this is a bit troublesome. Before I discuss more deeply, the following I
give first the confirmation correction table.

6
Now let me explain the code in the table above. Confirmation code Reentry on
the BBMA OA indicator is RRE, REE, and REM . R is Reentry, E represents
Extrem, and M refers to MHV. Suppose there is Reentry on H4 Time Frame, then
Reentry is valid with the following conditions.

 Code RRE = H1 is Reentry, M15 is Extreme.

REE = H1 code is Extreme, M15 is Extreme

7
REM code = H1 is Extreme, M15 is MHV

The yellow column contains Time Frame Reentrywhich will be used as an

8
No need to bother, the important thing is
patience and discipline
How? Difficult and complicated right? If you think Multi Time Frame analysis is
easy, then you are wrong. The level of patience and discipline needed to be
able to understand and master this knowledge is very high.
Patience and discipline are one of the most difficult to master trading
components. If all traders are patient and disciplined, of course no one will
experience the Margin Call or Stop Out at this time. But in fact it's not right? In
the BBMA OA indicator too, you have been asked to be patient, patient, patient in
waiting for the signal and complete setup , but still trying to enter in each
Extrem and MHV that is formed. This curiosity sometimes makes a profit, but
maybe more often results in big losses for you.
I understand and understand your desire to make a lot of money
quickly. Especially after seeing the magic of the BBMA OA indicator while on the
market. However, that alone is not enough. The knowledge you learn on that
basis is nothing more than a leaf on a large tree. I understand because I also
experienced the same time as you. Moreover, if you have seen the Buy / Sell
Extrem that occurred. The hands feel itchy because they want to get into
the marketimmediately to make quick money.
So what is the solution? Can I not enter every setup and signal in the BBMA OA
indicator? Do you have to wait until the full BBMA setup appears and can you
trade? Well, that's why the Multi Time Frame analysis is discussed; so you can
use it to confirm the BBMA OA indicator. You can also combine this indicator with
the analysis method Supply and Demand or Support and Resistance , to
facilitate the mapping of Take Profit and Stop Loss points.

Most technical traders in the foreign exchange market have come across the concept of multiple time frame analysis in their market education. However, this well-founded means of reading charts and developing strategies is often the first level of analysis to be forgotten when a trader pursues an edge over the market.

In specializing as a day trader, momentum trader, breakout trader, or event risk trader, many market participants lose sight of the larger trend, miss clear levels of support and resistance, and overlook high probability entry and stop levels. In this article, we define multiple time frame analysis, how to choose the various periods, and how to put it all together.

What Is Multiple Time-Frame Analysis?

Multiple time-frame analysis involves monitoring the same currency pair across different frequencies or time compressions. While there is no real limit as to how many frequencies can be monitored or which specific ones to choose, there are general guidelines that most practitioners tend to follow.

Using three different periods gives a broad enough reading on the market while using fewer than this can result in a considerable loss of data, and using more typically provides redundant analysis. When choosing the three frequencies, a simple strategy can be to follow a rule of four. This means that:

• A medium-term period should first be determined and it should represent a standard as to how long the average trade is held.
• From there, a shorter-term time frame should be chosen and it should be at least one-fourth of the intermediate period. For example, a minute chart for the short-term time frame and a minute chart for the medium or intermediate time frame.
• The long-term timeframe should be at least four times greater than the intermediate one through the same calculation. So keeping with the previous example, the minute or four-hour chart would round out the three frequencies.

It's important to select the correct time frame when choosing the range of the three periods. A long-term trader holding positions for months may find little use for a minute, minute, and minute combination. At the same time, a day trader who holds positions for hours and rarely longer than a day would find little advantage in daily, weekly, and monthly arrangements.

This is not to say that the long-term trader would not benefit from keeping an eye on the minute chart or the short-term trader from keeping a daily chart in the repertoire, but these should come at the extremes rather than anchoring the entire range.

Long-Term Time Frame in FX

With the method of studying charts, it is generally the best policy to start with the long-term time frame and work down to the more granular frequencies. By looking at the long-term time frame, the dominant trend is established. It is best to remember the most overused adage in trading for this frequency: The trend is your friend.

Positions should not be executed on this wide-angled chart, but the trades taken should be in the same direction as this frequency's trend is heading. This doesn't mean that trades can't be taken against the larger trend, but that those that are will likely have a lower probability of success and the profit target should be smaller than if it was heading in the direction of the overall trend.

When the long-term time frame has a daily, weekly, or monthly time frame in the currency markets, fundamentals tend to have a significant impact on direction. A trader should monitor the major economic trends when following the general trend in this time frame.

Whether the primary economic concern is current account deficits, consumer spending, business investment, or other influences, these developments should be monitored to better understand the direction of price action. At the same time, such dynamics tend to change infrequently, just as the trend in price on this time frame, so they need only be checked occasionally.

Advantages and Disadvantages

Some of the positive aspects of trading in the long term include;

• Lower overall risk because positions are held for longer periods, allowing the trader to ride out the lows until corrections happen.
• Benefiting from market trends, which brings stability to the trader's portfolio and mutes false signals and noise.
• Less time to monitor. Long-term FX traders don't have to react to quick market moves and can hold their positions for longer, which means they can take a step back.
  

The drawbacks of long-term trading in FX are:

• The potential for lower short-term profits. This doesn't mean, however, that the potential for long-term profits decreases.
• Fewer trading opportunities. This is true because traders have to hold their positions for longer periods rather than react to quick movements in the market.
• Increased capital requirements.
  

Medium-Term Time Frame in FX

Increasing the granularity of the same chart to the intermediate time frame, smaller moves within the broader trend become visible. This is the most versatile of the three frequencies because a sense of both the short-term and longer-term time frames can be obtained from this level.

As we said above, the expected holding period for an average trade should define this anchor for the time frame range. This level should be the most frequently followed chart when planning a trade while the trade is on and as the position nears either its profit target or stop loss. 

Advantages and Disadvantages

Let's take a look at some of the benefits of trading in the medium term:

• Traders in this timeframe can realize greater profits because of larger price movements.
• This period allows traders to make better decisions about their trades because they have more time to do their research.
• Medium-term traders are generally shielded from false signals and market noise that occur in the markets.
  

Some of the disadvantages of medium-term trading include:

• Medium-term traders are more prone to risk because they hold trades for much longer than short-term traders.
• There may be fewer opportunities available to medium-term traders than those who trade in the short term.
• Traders must resist short-term opportunities and stick to their targets, which means they can't let their emotions get the better of them.

Short-Term Time Frame in FX

Trades should be executed in a short-term time frame. As the smaller fluctuations in price action become clearer, a trader is better able to pick an attractive entry for a position whose direction has already been defined by the higher frequency charts.

Once again, consider that fundamentals hold a heavy influence over price action in these charts, although in a very different way than they do for the higher time frame. Fundamental trends are no longer discernible when charts are below a four-hour frequency.

Instead, the short-term time frame will respond with increased volatility to those indicators dubbed market moving. The more granular this lower time frame is, the bigger the reaction to economic indicators will seem.

These sharp moves often last for a very short time and, as such, are sometimes described as noise. However, a trader will often avoid taking poor trades on these temporary imbalances as they monitor the progression of the other time frames.

Advantages and Disadvantages

Short-term trading in the FX market comes with the following advantages:

• There is a greater potential for higher profits because of small market movements.
• The risk exposure is mitigated because traders hold their positions for shorter times.
• Traders in this time frame can take advantage of many trading opportunities over a single trading day.

The disadvantages of trading FX in the short term include:

• Traders have to make multiple trades, which means more transaction fees and, thus, higher costs.
• Traders have to consistently monitor market activity to identify entry and exit points, making this more time-consuming.
• Traders have to be wary of and wade through all the signals—positive and false—to avoid losses.

Putting It All Together

When all three times are combined to evaluate a currency pair, a trader will easily improve the odds of success for a trade, regardless of the other rules applied for a strategy. Performing the top-down analysis encourages trading with the larger trend.

This alone lowers risk as there is a higher probability that price action will eventually continue on the longer trend. Applying this theory, the confidence level in a trade should be measured by how the time frames line up.

For example, if the larger trend is to the upside but the medium- and short-term trends head lower, cautious shorts should be taken with reasonable profit targets and stops. Alternatively, a trader may wait until a bearish wave runs its course on the lower frequency charts and look to go long at a good level when the three times line up once again. 

Another clear benefit from incorporating multiple time frames into analyzing trades is the ability to identify support and resistance readings as well as strong entry and exit levels. A trade's chance of success improves when it is followed on a short-term chart because of the ability of a trader to avoid poor entry prices, ill-placed stops, and/or unreasonable targets.

Example of Multiple Time Frames in FX

To put this theory into action, we will analyze the EUR/USD.

In Figure 1, a monthly frequency was chosen for the long-term time frame. EUR/USD has clearly been in an uptrend for several years. More precisely, the pair has formed a rather consistent rising trendline from a swing low in late Over a few months, the spot pulled away from this trendline.

Moving down to the medium-term time frame, the general uptrend seen in the monthly chart is still identifiable. However, it is now evident that the spot price has broken a different, yet notable, rising trendline in this period and a correction back to the bigger trend may be underway.

Taking this into consideration, a trade can be fleshed out. For the best chance at profit, a long position should only be considered when the price pulls back to the trendline in the long-term time frame. Another possible trade is to short the break of this medium-term trendline and set the profit target above the monthly chart's technical level.

Depending on what direction we take from the higher period charts, the lower time frame can better frame entry for a short or monitor the decline toward the major trendline. On the four-hour chart shown in Figure 3, a support level of has just recently fallen.

Former support often turns into new resistance (and vice versa) so a short limit entry order can be set just below this technical level and a stop can be placed above to ensure the trade's integrity should spot move up to test the new, short-term falling trend.

The Bottom Line

Using multiple time-frame analysis can drastically improve the odds of making a successful trade. Unfortunately, many traders ignore the usefulness of this technique once they start to find a specialized niche. As we've shown in this article, it may be time for many novice traders to revisit this method because it is a simple way to ensure that a position benefits from the direction of the underlying trend.

There are different ways to skin a cat, they say. But in trading, especially short-term trading, one method might stand a shoulder above all, and that is the multiple timeframe analysis. What is the multiple timeframe strategy?

The multiple timeframe strategy is a method of trading that involves analyzing the asset’s price chart in different timeframes to spot the best time to take a position in the asset and when to close the trade. It implies combining different timeframes in your analysis of an asset before you make a trading decision.

In this post, we take a look at the multiple timeframe strategy. We end the article with a backtest.

Multiple timeframe strategy video

In case you prefer video and not writing, we have the essence of the strategy in this video:

What is a multiple timeframe strategy?

The multiple timeframe strategy is a method of trading that involves analyzing the asset’s price chart in different timeframes to spot the best time to take a position in the asset and when to close the trade. It implies combining different timeframes in your analysis of an asset before you make a trading decision.

Here, timeframes refer to the various standard periods used in charting platforms to represent trading sessions. For most charting platforms, the standard timeframes range from 1-minute to 1-month timeframes, with the common ones being 1-minute, 5-minute, minute, minute, 1-hour, 4-hour, 1-day, 1-week, and 1-month timeframes.

Some charting platforms (TradingView, for example) also have other timeframes, such as the 3-minute, minute, and 3-hour timeframes, as well as the tick chart.

Multiple timeframe analysis follows a top-down approach where traders use the higher timeframes to gauge the longer-term trend before using the smaller timeframes to spot ideal entries into the market. This method of analysis is especially important to short-term traders, such as scalpers, day traders, and swing traders, but can also be useful to long-term and position traders.

While there are more than 9 timeframes to analyze an asset on, traders often choose three or four appropriate timeframes for their analysis. The rule of thumb when selecting the timeframes for analysis is to use a ratio of or when switching between time frames.

So, a swing trader who wishes to conduct their analysis on three timeframes can choose the daily, 4-hourly, and hourly timeframes for their analysis. In this case, if the usual trading timeframe is the 4-hourly chart, the trader can use the daily chart to get a broad view of the market structure; step down to the 4-hour timeframe to spot trading opportunities, and step down to the hourly timeframe to know the right time to enter a position.

Similarly, a day trader can study the day’s trend on an hourly chart, and step down to the minute chart () for suitable entries. In this case, the minute chart indicates shorter-term developments, while the hourly chart is where the trade’s progress can be monitored going forward.

By and large, the idea of multiple timeframe analysis is relatively simple — analyze the charts in various timeframes to pick the best trading opportunities with high odds of success. Most day traders start by looking at the daily timeframe to get the long-term trend, and then look at the four-hour chart, down to hourly, and 5-minute chart.

The rationale for multiple timeframe analysis

For many short-term traders, such as scalpers, swing traders, and day traders, multiple timeframe analysis is the real deal, and there are many reasons for that. These are some of them:

• Multiple timeframe analyses can give them a broad view of the market structure and help them identify the prevailing trend. The daily chart below shows an uptrend, but in a lower timeframe, the market corrections look like downtrends on their own. See the H-4 chart below it.

• They are able to identify key levels of support and resistance at the higher timeframes, which are more likely to hold than the support and resistance levels in lower timeframes.
• Multiple timeframe analysis can help them identify important chart patterns, especially reversal chart patterns that can drive the price in the opposite direction of the trend.
• Indicator analyses on larger timeframes are more reliable than on lower timeframes. For example, the chart’s moving average might be sloping upward on a daily timeframe, indicating an uptrend, while on an hourly chart, the moving average may be moving downward, indicating a downtrend. The same can happen with the average directional index: it might be at 37 in the daily chart and 18 in the one-hour chart.

• This type of analysis can also help traders identify areas of putting stop-loss and take-profit.

What is a timeframe?

In financial trading, a timeframe refers to a standard period used in charting platforms to represent a trading session. So, a 1-hour timeframe represents an hour trading session. That is, one full hour of trading activity. In the same way, a price bar in the daily timeframe represents a day’s trading session, while a monthly price bar represents a month’s trading session.

Trading timeframes, therefore, refer to standard periods during which trading activities are recorded on the price chart. The price movement during each period is recorded as a price bar (in the case of a bar chart) or a candlestick (in the case of a candlestick chart). In a line chart, only one data point, usually the close price of the period, is documented.

For most charting platforms, the standard timeframes range from one minute to one month, with the common ones being 1-minute, 5-minute, minute, minute, 1-hour, 4-hour, 1-day, 1-week, and 1-month timeframes. Some charting platforms (TradingView, for example) also have other timeframes, such as the 3-minute, minute, and 3-hour timeframes, as well as the tick chart.

The weekly and monthly timeframes are usually considered long-term timeframes, while the intraday timeframes, such as the hourly, minute, minute, 5-minute, and 1-minute timeframes are considered short term. The daily timeframe is the most commonly used.

What timeframe is best?

There is nothing like the best timeframe for trading because different markets behave differently, and traders use different strategies. The best timeframe depends on the trading style, the trader’s strategy, and the asset being traded.

One timeframe may be good for one market but not good for another. For example, stocks may work great on the daily timeframe, while commodities may not work that great on the daily timeframe. It is left for the trader to find out the best timeframe for any given asset he wants to trade, and the only way to find out is by backtesting.

Another factor that determines the timeframe a trader chooses is the trader’s trading style. By trading style, we mean scalping, day trading, swing trading, or position trading. A scalper would usually have to use intraday timeframes for analysis. Most times, they use minute to 1-minute timeframes or even lower timeframes. It is highly uncommon for a scalper to trade on the daily timeframe.

As with scalpers, day traders normally trade on intraday timeframes but often on higher timeframes than the ones scalpers use. Day trading is mostly done on the hourly to 5-minute timeframes. Similarly, swing traders have their own preferred timeframes, and they are mostly the daily and 4-hourly timeframes. Position traders, on the other hand, prefer the daily timeframe but may also use the weekly timeframe.

Finally, a trader’s specific trading strategy or system may make money on one timeframe and fail to make money on another timeframe. It is the responsibility of the trader to backtest their strategy on different timeframes to find out which timeframe works best. So, the only way to find out the best timeframe for your strategy is by backtesting it.

Multiple timeframe strategy indicators

Apparently, you can use any indicator for a multiple-timeframe strategy. What matters is being consistent with the parameters and the settings.

For example, if you are using a period simple moving average to find the long-term trend on the daily timeframe, it makes sense to also use the same period SMA to find short-term trends on the hourly timeframe if you are using both timeframes for your analysis and plan to trade when both the long-term and short-term trends are in sync.

Having said that, these are some of the common indicators for technical analysis which you can use to implement a multiple timeframe strategy:

• Moving averagestrategies: A moving average is mostly used by market analysts to determine the direction of a trend, as well as dynamic support and resistance levels by evaluating the movements of an asset’s price. The indicator sums up the data points of an asset over a specified period and divides the total by the number of data points to arrive at an average. This average is continually recalculated based on the latest price data, which is why it is called a moving average. Traders can use the indicator for a multiple-timeframe strategy by trading when the indicator is in the same direction on different timeframes.
• MACDtrading strategy: The moving average convergence/divergence indicator is a momentum oscillator primarily used to trade trends. It appears on the chart as two lines that oscillate without boundaries, and the crossover of the two lines gives trading signals. When the MACD line crosses from below to above the signal line, the indicator is considered bullish. The further below the zero line the stronger the signal. Conversely, when the MACD line crosses from above to below the signal line, the indicator is considered bearish. The further above the zero line the stronger the signal. Traders can use it on multiple timeframes to find high-probability trade setups.
• Stochastic trading strategy: The stochastic is an oscillator that compares the most recent closing price of a security to the highest and lowest prices during a specified period to indicate the security’s momentum. Its readings oscillate between zero and A market’s overbought condition is indicated when the stochastic reading is above 80, while readings below 20 indicate oversold conditions. A sell signal is generated when the oscillator reading goes above the 80 level and then returns to readings below Conversely, a buy signal is indicated when the oscillator moves below 20 and then back above By analyzing the indicator on different timeframes, traders can identify when the longer-term and shorter-term momentum are in sync, which could provide high-probability trading opportunities.
• RSI trading strategy: The relative strength index is a momentum oscillator that measures the speed and change of price movements. It oscillates between zero and , and traditionally, levels above 70 are considered overbought, while levels below 30 are considered oversold. RSI can also be used to identify the general momentum of a trend. Signals can also be generated by looking for divergences and failure swings. Matching signals in a higher and lower timeframe at the same time could present a high probability trading opportunity.

Multiple timeframe strategy example

We will use the RSI on the daily and 4-hourly timeframes to show a typical swing trade example. So, we will attach the indicator on the daily and 4-hourly charts.

As we stated earlier, the RSI can give so many signals, but we will focus on signals that show a rising momentum to the upside, which is a buy signal. This is generated when the RSI is rising from the oversold region (below 30). We look for the signal occurring at the same time in both the daily timeframe and the 4-hourly timeframe, which shows that there is both long-term and short-term upside momentum. Let’s take a look at the charts below:

The chart above is a D1 chart of the S&P Emini futures. On Friday, January 27, , the RSI rose from the oversold region (below 30), indicating a rising momentum on the daily timeframe. On that day, when you step down to the 4-hourly timeframe, you would have the chart below: Notice how the RSI is also rising on the 4-hourly timeframe, having risen above the 30 level the day before.

This tells us that the momentum is rising on both the daily and 4-hourly timeframes, so we can take a position at the close of the H4 price bar. The chart below shows how the trade would have played out. We would have placed our profit target below the next local resistance level which would have been hit on Wednesday, February 02, — a simple and profitable swing trade, lasting only four days.

Multiple timeframe strategy backtest &#; does it work?

Let’s go on to make a backtest of a multiple timeframe strategy with strict trading rules and settings. We won’t make it exactly as explained above, though.

We make the following trading rules for our backtest:

1. We use a long-term trend filter: The close must be higher than the close days ago.
2. We use an intermediate trend filter: The close must be higher than the close 22 days ago.
3. We use a short-term pullback: The close today must be a three-day low (of the close).
4. If 1, 2, and 3 are true, then go long at the close.
5. We sell at the close when the close is higher than yesterday’s close.

If we backtest those five trading rules on the ETF XLP, which tracks consumer staples and is a fantastic trading vehicle (why trade XLP), we get the following equity curve:

The trading statistics and performance metrics read like this:

• Number of trades:
• Average gain per trade: %
• Win rate: 73%
• Max drawdown: %
• Profit factor: 2

It works reasonably well, albeit the average per trade is perhaps a tad too low (?).

Multiple time frame trading strategy video

List of trading strategies

We have written over articles on this blog since we started in Many articles contain specific trading rules that can be backtested for profitability and performance metrics.

The trading rules are compiled into a package where you can purchase all of them (recommended) or just a few of your choice. We have hundreds of trading ideas in the compilation.

The strategies are taken from our trading strategy list.

The strategies also come with logic in plain English (plain English is for Python trading and backtesting).

For a list of the strategies we have made, please click on the green banner:

These strategies must not be misunderstood for the premium strategies that we charge a fee for:

FAQ:

How does multiple timeframe analysis work?

Traders use a top-down approach, starting with higher timeframes to gauge long-term trends and then narrowing down to smaller timeframes for precise entry points. This strategy is especially valuable for short-term traders but can benefit traders with different time horizons.

Why is multiple timeframe analysis important for short-term traders?

Short-term traders, such as scalpers and day traders, benefit from multiple timeframe analysis as it provides a broader view of market structure, identifies key support and resistance levels, and helps spot trend reversals and patterns for more accurate trading decisions.

How do traders choose the right timeframes for analysis?

Traders often use a ratio of or when selecting timeframes. For example, a swing trader may analyze daily, 4-hourly, and hourly timeframes. The daily chart provides a broad view, the 4-hour chart spots opportunities, and the hourly chart identifies optimal entry points.