Out of all kind of trading strategies I have found that multi time frame forex strategy is the most effective as it keeps an eye on other time frames apart from the current time frame.
Why Is Multi Time Frame (MTF) Trading 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, rather intraday chart follows the daily and weekly trend.
- If the daily and weekly trend are up we need to buy in dips in intraday charts.
- If the daily and weekly trend if down we need to sell on a rally in intraday charts.
- If daily and weekly trends are conflicting we need to trade intraday with caution.
I have found a multi time frame forex strategy called Alpha Trader Method and would like to share the method with my readers.
Alpha Trader Method trading rules are like the following:
- 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 of daily and weekly charts – you must remember this rule.
- For short sell signals, 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 of the thick black line on both the;RSI Histogram Indicators.
- For buy signals, green arrow points below the price bar and also the white line with the GREEN histogram (RSI Histogram Indicator) should be above of the thick black line on both RSI Histogram Indicators.
Download link to the multi time frame forex strategy Alpha Trader method is as follows. In the download, you will get 5 MT4 indicators and 2 MT4 templates. CLICK HERE TO DOWNLOAD.
Categories: Forex Trading Systems