Order of Entry with Forex Charts
Another simplified but powerful method on how to use multiple time frames to trade Forex charts This topic highlights just another easier method of knowing the correct order of using multiple timeframes to enter a trade. How many times have you noticed tempting setups on your Forex charts and blindly entered trades only to end up donating a fair chunk of your trading capital to the markets? So what is the “order of entry” you ask and how does it work? Simple…provided you have followed my method and have grasped the concept.
Lets assume in this example you trade 10 minute Forex charts (you must have a timeframe that you normally trade), and as can be seen in the chart above (by the yellow ball), a possible trading opportunity looms on the 10 minute timeframe, do you trade? No! The next step is you need to take a look at the 60 minute timeframe, what do you look for here? The major trend direction is what you look for, and I repeat, only the major trend direction (position of the Ema 200) and nothing else! Then what? Then you change over to the 30 minute timeframe – now apply my trading methodology to this time frame and wait for the final SAR indication, and then… Now change over to the 10 minute trading time frame and trade the crossover of the lower moving averages ma8 and ma20 (if this was an up trend) you would trade the first candle close above the ma8 after the crossing. A more refined entry in this example can be made using the 5 minute chart. In conclusion what exactly have we achieved here, we used the power of three time frames to enter our trade - so what exactly is happening then? Let me explain! In the 60 minute chart we look only for the overall trend, we do not wait for all other conditions to be met here. The 30 minutes chart all trading conditions of my method must be met up until which time the SAR indicates a trade; the exception is we do not wait for the cross over here. The 10 minutes chart is where you will be ready to enter the trade only when you notice the final cross over of the two lower moving averages and a candle close above the ma8 after the crossing.
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