Multi ... what? Frame analysis. You know, I came to you to study technical analysis, and you frighten me with terrible words. Calm down! Nothing complicated. Multifram analysis is when we analyze the same currency pair (or another asset) at once on several timeframes. You yourself know that any price can be seen on the chart: Problem. Traders often get confused with this. On the 4-hour chart, they see a signal for sale, on a 15-minute chart for a purchase. Where to run, who should complain? Maybe just sit on one timeframe and ignore all the others? Oh, great idea. You can also throw a coin for reliability. Let's understand: what timeframes need to be used and how. The question of which timeframe is better to trade is asked very often. And it is constantly given the wrong answer when a newcomer chooses a timeframe, which does not suit him psychologically at all. Green, inexperienced traders want at once a lot of money in the shortest time. Such naive cuties with big eyes. Therefore, they naturally choose a 1-minute or 5-minute chart. However, with time it turns out that most of these timeframes have a continuous upset stomach and emotional frustration. The frenzied price of these TFs provokes incredible greed, disables brains and most lose money in turbo mode. For some it is convenient to sit on the 1-hour chart. We have to wait much longer, the signals to the entrance are much less. But much more time to analyze the market and there is no hurry. At the same time, there are people who work steadily with the 15-minute schedule, and 1-hour does not interest them at all. And of course a frequent guest in the terminals - several TFs on one screen at once: So what's with the best timeframe? The whole point of Dow's theory is that we do a price review from the senior TF to the youngest and get, therefore, a complete picture of the market. A timeframe is just a detail of the price movement. It is always the same, a glass of prices is always the same. Just the price can be looked at least in a minute, at least monthly. When it comes to basic TF, it is too fast for one, too slow for another. This is normal, it should be so. You will still try them all, so the question of a permanent timeframe is purely rhetorical. Before looking for signals and inputs on "small" charts, it is advisable to analyze:
• 4-hour (or even daily) chart;
• 1 hour chart.
When you see the whole picture as a whole - the chances for successful trading decisions increase significantly. Multiframe analysis is the basis, which complements the Dow theory and, in fact, is based on it. First you need to choose a global timeframe, after which you learn how to detail it. And, on the contrary, enlarge small timeframes to get a general picture of what is happening. Never enter into transactions without checking the situation on senior TF. Otherwise, you risk getting stuck on one timeframe and certainly miss an important market move. You can watch the timeframes one by one or several at a time on the same screen.