Multi Time Frame Trading

Binary Umpire Logo
Authors Rating

Multi Time Frame Trading – A Price Action Strategy

Multi Time Frame Trading:- today I would like to discuss a concept with you that is sure to increase your winning ratio.

 

The concept is simple.  It involves using one currency pair over multiple time frames to get a general feel of the overall market direction. Support and Resistance Lines are set as majors and minors.  Major Support and Resistance Lines are set on the higher time frames for example the 1 hour or 4 hour charts and minor lines on the lower time frames such as the 5 minute or 15 minute charts. Multi Time frame analysis enables a trader to increase the probability of winning trades and minimise risk.

 

“Your capital may be at risk. This material is not investment advice.”

 

It is important to understand that price action tends to respect major support and resistance lines more than the minor support and resistance lines. You can apply the concept for both trend trading and counter-trend trading techniques.  As a visual aid it might be worth colouring these lines differently so it is easily verifiable.

Taking EUR/USD H1 Chart as an example we can see that clearly the prices where prices have respected before a trend reversal occurs.

EUR USD H1 Chart Multi Time Frame

Now we look at 15 minutes and see what this same picture looks like.

EUR USD H15 Chart Multi Time Frame Chart

We can see that the price bounced off 1.10702 indicating a major resistance line.  Notice how the few indicators all followed the same path.  Indicators shown here include

  • Bollinger Bands by John Bollinger
  • Parabolic Sar
  • Hull Moving Average (12)
  • RSI Indicator 7 and 14.

This indicators are not essential but they strengthen the validity of the time frame analysis.

 

How Multi Time Frame Trading works?

Understanding what happens over a longer period of time will give you a clear understanding of the trend.  This thus enables you can make more clear, concise and accurate decisions when looking for trading opportunities on the smaller time frames.

If there is a long-term trend on a higher time frame, then trading in the direction of that trend on the lower time frame is likely to produce a higher probability of winning trades.

H4 and Daily Time Frames 

Support or resistance levels identified on these mega levels can be particular useful to identify a powerful turning point commonly referred to breaking the trend or break out strategy.

Once a support or resistance level has been established on the higher time frame, Use the lower time frame, say the one hour charts to fine tune the entries.

Placing Trades for Binary

For Binary I would take a put at the major using the 15 minute for entry based on higher time frames for atleast 2 candles.  So in this case 45 minutes to an hour would be ideal.

Placing Trades for Forex

I rarely go short on Forex .  If a major level has been identified on H4 chart or Daily Level then you can use the H1 chart for fine tune the entries.  The Stop Loss would be set above the support line to prevent markets from clearing the stops by retesting these levels.

 

Multi Time Frame Analysis Summary

Multiple Time Frame analysis is important and should be part of the trading plan of any binary or forex trader.

Use higher time frames for support and resistance levels and smaller time frames for fine tuning.

  • For Forex stop loss should be set above resistance and below support.  Take Profits should be set at the next support level or resistance level.
  • For Binary trades should be at least 2 candles long.

 

Recommended Forex Merchant 24 Option Review

24 Option Broker

 

Please be sure visit our Recommended Signals Page.

 

 

We hope you found this article useful and look forward to hearing your feedback.  Check out our Top brokers like and be sure to demo start testing this strategy out before going live.

 

 

 

Support and Resistance Strategy

Binary-Umpire-Logo
Authors Rating

Support and Resistance Strategy

Support and Resistance is the heart of any price action strategy.  A candle stick chart is a blue print of how a particular stock, commodity or currency pair behaves.

 

Assets move in waves , any fundamental moves are gradual, cyclical rather than escalated.   To be successful in trading these behaviours need to be understood, studied and followed.  In simplistic terms ‘always follow the trend’.

 

Risk disclaimer: “Your capital may be at risk. This material is not investment advice.”

 

For this strategy you will need but a candlestick chart ( See example of a 15 min. chart of USD/JPY)

 

support and resistance basic

 

Where candles reach touch three or more times , it is a good sign a support or resistance is formed. See trendlines on the above charge. When you see a candle approaching a support and resistance.  The strategy would be to wait for the candle to close .  If you see the next candle starting to head towards the opposite direction.

 

Take a trade in that direction

 

For additional confirmation you can add

  • Ema’s 9,12 (to see the shorter trends)
  • Ema’s 50, 100 and 200 (to see major support & resistance levels that are time defined)
  • Bollinger Bands- By John Bollinger

 

Bollinger Bands reflect direction with the 20-period SMA and volatility with the upper/lower bands. As such, they can be used to determine if prices are relatively high or low. Technically, prices are relatively high when above the upper band and relatively low when below the lower band. See example below:

support and resistance

 

Add this to support and resistance and you have a very good strategy that works almost 75% of the time bearing in mind fundamentals. This method works on all time frames but is more reliable in the higher time frames. The recommended trade is atleast 2-3 candles. So for 15 minutes , a 30 or 45 minute is recommended.

 

Demo test before trading live to get use to the idea.  As always trade smart, be prudent and use good money management principles as like any business.

 

Best Regards

Binary Umpire Team

 

RSI Cooler Binary Options Strategy

Binary-Umpire-Logo
Authors Rating

RSI COOLER

This RSI Cooler strategy relies on simple indicators and works on most time frames.  The longer the time-frame I have however found tend to be more accurate.  In this example we have picked the GBP/USD 15 minute chart (See chart)

 

Risk disclaimer: “Your capital may be at risk. This material is not investment advice.”

 

  • The Indicators you will need for this is1- A 9 & a 12 day Moving Average (EMA)2- The RSI with the 30, 70 and 50 levels set out.  RSI  is set a default setting of 14.  With this strategy all you need to is take a put a call or a put when the following conditions are met.
    1. The EMA’s cross each other
    2. The RSI crosses the 50 or the 70 level at the same time as the EMA’s crossover.
    3. Both these should really close to the beginning of the candle.  This would not be ideal if the candle formation is too big and the RSI crossover happens.
    4. For 15 minutes charts the suggested trade would be half hour call or put.

 

GBPUSD RSI COOLER STRATEGY

In addition to this why not check out article on having the right mindset. Mindset Training – An Overview http://binaryumpire.com/mindset-training/.

Demo test this strategy ,  If you have any comments you are welcome to send me a message at onlinebusinesskits@gmail.com

Best Regards

Binary Umpire Team