Exclusive Trading

Why do we need to Trade Using Multiple Timeframes?
To improve the efficiency of our trading strategy. We see the major Trend using a higher time frame than what we intend to use & a lower Time frame to enter a trade.
Say we want to trade using the Daily Charts. We take the Weekly charts to see the major trend. Suppose it's an uptrend in a Weekly chart. We will tend to trade only long positions. We will use entries in the daily charts to enter long positions only. When sell signals are generated we will just exit our long positions. I.e. we don't short sell.
Suppose it's a downtrend in a Weekly chart. We will tend to trade only short positions. We will use a entries in the daily charts to enter short positions only. When buy signals are generated we will just exit our short positions. I.e. we don't enter long positions.
Now that we are using two timeframes. Now coming to timing the entry of trades or adding additional positions. (Pyramiding) We can further use a Hourly chart to time our entries. Supposethe weekly & daily charts are in a uptrend. We will enter a long position or an additional long position when a hourly chart gives us a buy signal. Supposethe weekly & daily charts are in a downtrend. We will enter a short position or an additional short position when a hourly chart gives us a sell signal. This timeframe would not be used to exit the trades. It's solely to improve the timing for entry. For exits we would use the signals generated in the daily charts.

Financial In Market Using multiple time frames to trade.
We take three charts of the same security. First is the weekly chart. Next chart is the daily chart. Third chart is the hourly chart.
We will now use the daily chart to trade. We check the weekly chart for the weekly trend. Lest assume the weekly trend is up. So based on this information we will just trade long positions in the daily chart.
We look for a buy opportunity in the daily chart or we can see the hourly chart to enter a long position.
Now for entering additional positions we use buy opportunities in the hourly chart. We would exit based on the daily chart only, because we were trading based on the daily chart.

Learn to trade effectively using different time frames with multiple monitors. on trading lab is hosted by seasoned trader.

Oriental Trading Similarly we can trade short where weekly charts are in a downtrend and daily chart generates sell opportunity. Additional positions are entered whenever sell opportunities are generated on the hourly charts.

#3 Trade in the Right Time Frame! You have a life beyond trading. May be you have a job or go to school. You have family and social commitments. All of these things combine to determine the timeframe you can use. It does not make sense, for example, to try day trading when you cannot not monitor the markets almost continuously. In my own trading, there are times when I can day trade or swing trade ( 3 day position durations), but there are others when I know I won' term positions. You must find a trading time frame that fits your lifestyle.

Financial Forex Forex Software For Day trading we can use the Hourly, 15 Min and 5 Min charts here we trade the 15 Minchart. Orwe can use 15 Min, 5 Mins and 3 Mins charts herewe tradethe5 Mins chart.

Trading Good Luck and Happy Trading.

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Umashankar Galla is a Technical Analyst with an experience of 11 Years .Trades & Invests in Indian Exchanges. He is developer of the Trading System "USG My Analyst". A precise trading system to trade Intraday or End of Day.
Website :http://www.technitraders.com/
Forums at: http://www.technitraders.com/forums/
Mail at : info@technitraders.com

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Day Trading

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