The Advantages of Using Different Timeframes on MT4 to Trade Forex

When you trade forex on MetaTrader 4 (MT4), you can’t afford to be focusing all of your attention on just the one timeframe. If you’re a swing trader, then you can’t just focus on the higher time frame charts and likewise if you’re a day trader, you can’t just focus on the intraday charts. You have to take a much more broad view when you’re conducting technical analysis on your MT4 platform.

I’m going to go over the advantages of the three different timeframe levels that you can view charts on in the MetaTrader 4 platform and discuss how to conduct your analysis simultaneously across each.

Advantages of Higher Time Frame MT4 Charts (M1, W1, D1)

Best used for spotting major support and resistance levels. By using the higher time frame charts on MT4 such as the monthly, weekly or daily chart, you can identify tops and bottoms and clear higher time frame trends to support trades across any time frame you make.

Identify whether price is at a key level and any potential breakout or bounce might be upcoming. There is some subjectivity here as a more experienced trader can use feel to try to get earlier entries and take more from the total trade. The higher time frame charts are also used to try to find if there’s an overall continuation or pullback in order, depending on where price is sitting within the overall trend.

Always use the higher time frame charts in conjunction with the intraday charts, especially when you’re trying to identify trends. There is no point only looking at an intraday chart for a potential short position, only to ignore the fact that every single higher time frame chart is showing a massive bullish run!

Of course you should also be trying to line up your intraday charts with higher time frame support and resistance levels so you avoid selling into major support or buying at strong resistance.

Advantages of Intraday Time Frame MT4 Charts (H4, H1 M30)

Intraday time frames just mean the charts that show candles less than a day in length. These lower time frame MT4 charts are best for showing smaller trends or trading patterns that you can take momentum trades off of.

By using the lower time frame MT4 charts in conjunction with higher time frame levels and trends you have already identified, you are able to get your trades on early and on the path of least resistance.

I’m sure you’ve heard the sayings:

“Don’t catch a falling knife”

“Don’t step in front of a moving train”

Well all these quotes both mean is that you’d be crazy to fight the bigger picture flow of the market. If every single time frame but the one you are looking at is telling you that the market is moving the opposite direction, then there is no reason you should be fighting it.

These lower time frames are best for finding and taking your trades off of. They are the chart that triggers your decision making and helps you to manage your short term risk as a leveraged forex trader.

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Source: Vantage FX Blog