Hey hey: what's up my friends, so in today's episode we'll be discussing about multiple time frames and how you should you know, use it in the correct manner. Because often i see right traders using multiple time frames right in the wrong way. They think that they just need to flick through some charts from the one hour to the four hour, to the daily to the weekly timeframe and that's multiple timeframes. You know analysis right and that should help their trading.

No, that couldn't be further away from the truth. Right so in today's episode i want to share with you a very simple cheat sheet. If you want to call it right so that when you employ multiple time frame, analysis in your trading or things will make sense and things will be relevant right to your time frame that you are trading okay, so first right, let's talk about how not to use Multiple time frame in your trading so often right, i can see traders they enter their trades on the let's say, 15 minutes time frame and their higher time frame is on the monthly time frame, and that is ridiculous right. That is, like you know, trying to let's say you are living in a house, your next door, you have a very, very hot neighbor, a hot chick or a handsome hug, and you want to spy on them so by right.

What you should do is just to take a ladder climb up your house, and you know people then spy on them, but instead, what you're doing is that you go all the way up to the satellite space station to spy on your neighbor down below, which doesn't Make sense, because it's too far away to your objective right to what you're trying to accomplish okay. So this is the same as you know, entering your trades on the 15 minutes time frame and then going up to the monthly time frame right as your higher time frame analysis. It's irrelevant to you or how about this. Let's say you are entering your trades on the daily time frame: okay and then you want to go down to a lower time frame to time your entry, so from the daily time frame, you go down all the way down to the five minutes.

Time frame to time your entry again, this doesn't make sense because, whatever you see on the five minutes, time frame will be noise to you on the daily timeframe, because you're going down too much right into granular details right where those details are irrelevant to what you're Trying to accomplish and again in this way what you're trying to do is like trying to cross the road right, trying to see whether there's any incoming traffic and the way that you do. The way you determine whether there is traffic is by holding a magnifying glass in your hand, and then you go down to the road the floor and you look at the floor and the granular details of the road to see whether there's any cars coming in doesn't Make sense right so so don't make this mistakes right when it comes to multiple time frame trading right, you don't want to be too far away or too detailed to zoom in right, where you're not uh. Looking at the charts, which are relevant to your own trading, so now the question is right: you know how do you actually define right? What are the right time frame for your trading, or how do you apply multiple time frame to your trading so to get started right? I just want to credit adam grimes and uh alexander elder, because i learned this technique from them right. So so the way you know you want to approach multiple time frame trading is to use a factor of four to six.

I believe one of them mentioned a factor of three to five, but i think four to six. You know it. It suits well so how this works right is that, let's say you are entering your trades on the 15 minutes time frame. So what should your higher time frame be? Well, what you can do is you can use a factor of between four to six.

So what you do is you take that factor multiply by your trading time frame so, for example, the 15 minutes timeframe you multiply by four. That is 60 minutes which is equivalent to one hour. So that is a factor of four. So the one hour time frame can be the higher time frame right to your 15 minutes timeframe, that you are entering your trade on simple or if you want to go with a factor of six, that's possible as well, so that higher time frame will be the 90 minutes time frame right a factor of six to the 15 minutes time frame so anywhere between a factor of 4 to 6.

Right is perfectly fine. If you ask me so likewise, let's say you are you know the the daily time frame is your trading time frame, and maybe you want to you know better time your entry get an earlier entry on the lower timeframe. So how do you actually know define right? What is a suitable, lower time frame? Well again, you can use a factor of four to six. So again, let's keep things simple.

You know that on a daily time frame, let's say you, trade fx. You have 24 hours a day. So if you go by a factor of six right, your lower time frame will be the four hour chart. So you can use the forward chart right to time your entry right onto the daily time frame that you are trading on.

Does it make sense, so bear this in mind right when it comes to multiple time frame analysis right anywhere between the four to six right, a factor of four to six is kind of like the sweet spot. Of course, if you are advanced in trading you're, a pro trader you want to, you know, tweak this factor to your own preference. I leave it entirely up to you, but if you're new to trading you're still, you know not getting the hang of things right then remember this factor of four to six right when it comes to multiple time frame analysis. So with that said right, i wish you good luck and good trading.

I will talk to you soon. You.