MTF Forex Strategy – Alpha Trader Method

Multi Time Frame Forex Strategy

Out of all kinds of trading strategies, I have found that the multi-timeframe or MTF forex strategy is the most effective. This is because it keeps an eye on other time frames apart from the current time frame. Hence in this post, let us discuss the importance of multi-timeframe analysis in forex trading. Also let us gift you Alpha Trader Method, a MetaTrader indicator set to trade forex in the MTF way.

What is MTF in forex trading?

MTF is short for Multi Time Frame analysis in the forex market. This is a method traders use to stay abreast of both long-term and short-term trends in their currency pair or other positions they have open. This type of tracking involves looking at charts on multiple time frames. Traders generally watch 1 minute, 15 minutes, 1 hour, 4 hours, etc, to analyze and incorporate certain patterns from each level to form overall conclusions about the highest likelihood direction of price movements.

Why is MTF Forex Strategy Important?

  • It keeps an eye on other time frames. Suppose we are trading on the hourly time frame, we also have an eye on daily and weekly charts.
  • A trend is not generated on intraday. Hence, we need not watch the intraday chart alone. Rather the intraday chart follows the daily and weekly trend.
  • If the daily and weekly trends are up we need to buy in dips in intraday charts.
  • In case the daily and weekly trends if down we need to sell on a rally in intraday charts.
  • And if daily and weekly trends are conflicting we need to trade intraday with caution.

Introducing Alpha Trader Method: An MTF Forex Strategy

I have found a multi-timeframe forex strategy called Alpha Trader Method and would like to share the method with my readers.

Alpha Trader Method Trading Rules

  • Both the daily and weekly charts SHOULD be trending in the same direction.
  • Trade in 4 hours chart and you should only look for the trades that are in the same direction as daily and weekly charts – you must remember this rule.
MTF Forex Strategy

Buy and Sell Signals

  • For short sell signals, the red arrow points above the price bar, and also the white line along with the RED histogram (also known as RSI Histogram Indicator) should be below the thick black line on both the; RSI Histogram Indicators.
  • For buy signals, the green arrow points below the price bar, and also the white line with the GREEN histogram (RSI Histogram Indicator) should be above the thick black line on both RSI Histogram Indicators.

Download Alpha Trader Method MT4 Indicators and Templates

Download the MTF forex strategy Alpha Trader method from this link. In the download, you will get 5 MT4 indicators and 2 MT4 templates.

Conclusion

Financial markets, like the Forex market, present many opportunities and complexities. The MTF forex strategy provides a simple but effective approach for traders of all levels to take advantage of these possibilities. Combining technical analysis with essential indicators and strategies such as support/resistance lines gives investors an edge in navigating today’s ever-evolving marketplace. Also by adopting the Alpha Trader Method, you can quickly make more informed decisions when trading on the foreign exchange market.

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Author: Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.

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