Trade entry using smaller time frames

Yesterday I spoke about using smaller time frames to confirm events that are happening on a larger time frame. Today I will discuss using smaller time frames to assist in entering a trade, and to make small profits.
Below is a daily chart of the EURUSD. I will show you how you could have made a small profit from the boxed area. The 2 large red candles in the box moved a total 415 pips, to have made some money from them you would have used a smaller time frame.

In the 4 hour chart below we had a candlestick reversal shape in the way of a head and shoulders. This shape is also at a RN and we have convergence on the MACD.

Through using the 4 hour chart we would have been able to enter the trade and make some money from the small shorting position.


This is only an example of how to use different time frames with one another, as opposed to just using the one time frame. It also depends on what kind of trader you, whether you are a swing trader or prefer a more short term trade.
I hope this was useful and hope you are able to put this into practice on your own trades.

Good Luck and happy trading.

Importance of looking at other time frames

My first 2 updates have been similar in the way of looking at the chart pattern of a 123 at a support/resistance.This pattern cannot be predicted, but in some cases we can see it develop over a long period time. They are however very easy to see after they have happened.
Below is a daily chart of the EURGBP. You can see quite easily that we have a 123 at a support and at a breather level. This wouldn’t have been easy to see in real time if you are fairly new to trading.














If you compare this with the 4hr chart you spot the 123 very easily as it has a larger shape compared to the daily chart. This also gives you the chance to prepare you entry and your stops.













Without looking at the 4hr chart you could have missed a fairly easy trade, because the 4hr chart was showing the 123 shape before the daily was. This is why it is important to use multiple time frames.

Missing an easy Opportunity

If you were looking at the CHFUSD and you didn’t manage to capitalise on the massive drop in price and are wondering why, these are some of the things that you should have been looking for.

The first thing you should have noticed was the 123 at a previous resistance. We also have divergence on the MACD. These 2 things alone have indicated that we were awaiting a reversal.

We now have two confluence events, which may not be enough for you to enter a trade.













I have also posted the 4hour chart, and you will see we had the exact same confluence of events, giving us a total 4, which means you now had very strong evidence to enter the trade.













If you had missed this trade because you didnt understand why to enter the trade, I hope this has helped to make things clearer and helped you to learn from this analysis to put into practice in your next trades.

Simple Shorting on the Kiwi

Looking at the daily chart if you had noticed the 123 at a breather level which is also at a strong RN, you would had the opportunity to make exceptional large profits, by taking a short position.

With good trade management you would have been able to maximise your profits, as there was plenty of warning to tighten your stops.

The signals we had to manage the trade came in the form of convergence from the MACD and price heading towards a key RN. These signals came in on multiply times frames and also gave plenty of warning.














Well done to those of you who saw this and were capitalised on this.

The Dynamic Traders

This forex blog is owned by Dynamic Trader Ltd and is maintained and updated by the forex analysts Javid Shaik and Anne Chapman on a consistent basis.

If you are looking for instant trading success then you have arrived at the wrong place. In fact instant trading success does not exist no matter what you may havebeen told, read or heard. However, what does exist is a path to above average returns if you are prepared to put in the time to learn our dynamic trading techniques and strategies some of which we share with you for free on this trading blog.

Although this forex blog is focussed mainly towards those that have been mentored by Dynamic Trader, it is a source of forex techniques, forex strategies and daily forex updates that will be great currency education for everyone interested in forex trading.

Dynamic Trader is not an introducing broker. We have no connection with any forex broker and never push you to open any particular broker account in return for commission from the broker. We are completely impartial and will only suggest what is best for those we mentor at all times. Unlike some seminar companies that have you sign up for a particular trading account in order for them to claim their once off or ongoing commission from the that broker or websites that advertise broker accounts and special offers, we will only ever do what is best for those we mentor and only once we learn the needs of those we teach can we decide what accounts are best for them to consider.

Dynamic Trader FX blog is intended to be used strictly as an educational tool and for general information only. Example charts and trading analysis are for illustrative purposes only and should not be construed as investment advice or a basis for a strategy.

Dynamic Trader is not an investment advisor. We will educate and show you how to trade the forex markets. Our aim is to empower forex traders through education, knowledge, strategies and real world situations.