How to use multiple time frames trading forex

How to use multiple time frames trading forex

00:13

Intro and selecting pound aussie trade

00:13

The speaker begins by greeting the audience and addressing some chat questions before shifting focus to market analysis. They discuss their decision-making process between trading the euro and the pound, ultimately choosing the pound due to its strong movement. They highlight a significant drop in the pound and a corresponding rise in the Australian dollar, illustrating this with a five-minute chart to emphasize the strong selling and buying activity.

01:16

Analyzing currency extremes and trends

01:16

The speaker discusses monitoring currency extremes, focusing on the New Zealand dollar and the Australian dollar, which are strongly oversold. They highlight the importance of identifying early entry points by observing extremes, especially around the London open, and the value of understanding opposing buying and selling forces to anticipate strong trends.

01:47

The importance of recognizing opposing forces of buying and selling is emphasized as a key to identifying the strongest trends. The speaker introduces the Currency Strength Indicator (CSI) as a tool that visually displays which currency pairs are worth trading and which are not, helping traders focus on pairs with real momentum.

02:21

The speaker explains that some currency pairs, such as the pound/euro, show little trending movement due to both currencies falling, while others, like the dollar, yen, Australian dollar, Canadian dollar, and Swiss franc, are rising. They stress the need to carefully select pairs that will deliver meaningful momentum for trading.

02:48

The speaker prefers trading at market tops and bottoms, targeting overbought or oversold conditions to enter early and capitalize greedily. They mention the advantage of short-side trading and note that currency futures, which are inverted against the dollar, offer additional opportunities. They also observe that markets typically fall faster than they rise.

03:17

Multiple timeframe CSI and trend context

03:17

The speaker explains the importance of analyzing trades over multiple time frames to identify trends in currency trading, specifically using the pound versus the Australian dollar as an example. By examining one-minute, five-minute, ten-minute, and fifteen-minute charts, traders can understand the broader context and strength or weakness of the currency pairs. Shorter time frames may show oversold or overbought conditions and short-term reversals, while longer time frames reveal the overall trend direction and potential for further movement. Different traders may interpret these signals differently based on their preferred time horizons, with short-term traders capitalizing on pullbacks or pauses that longer-term traders view as part of a continuing trend.

05:17

Managing pullbacks and emotional trading

05:17

The speaker explains that markets never move in straight lines; they always pause and reverse, which triggers emotional responses like taking profits early. This behavior, while natural, often leads to a series of small losses and profits. To address this, trend-based indicators such as the trend monitor are used across multiple time frames to help traders stay invested despite pullbacks and reversals. The example focuses on the Australian dollar and the British pound, showing how early signs of trend weakness appear on shorter time frames but need confirmation across longer intervals. Maintaining a position through these fluctuations is crucial for successful trading.

07:18

Volume, volatility triggers and support

07:18

The speaker analyzes a 15-second chart showing a small reversal, emphasizing that slower time frames like 5, 10, or 15 minutes are more significant. A volatility trigger on a candle indicates market makers’ activity, leading to expected congestion as trading occurs within that candle’s spread and around the volume point of control. The trend monitor transitioning to bright red supports a short position, with a declining volume histogram suggesting reduced market interest at higher volumes.

08:17

The discussion focuses on low volume nodes below the current price, indicating areas where the market may move more freely due to fewer pending orders or trapped traders. Volume acts similarly to price-based support and resistance, where heavy volume regions create resistance and light volume areas allow easier price movement. The speaker highlights a down candle with strong volume and no significant wicks, suggesting a decisive move during the London session.

09:22

The market is expected to move quickly through low volume areas due to lack of resistance. The speaker compares volume during different European and London session hours, noting no significant buying pressure on the candle analyzed. The analysis continues with a look at a three-minute chart showing similar volume patterns and support/resistance concepts, reinforcing the expectation of a downward move.

10:52

Support and resistance levels are examined using the accumulation distribution indicator on NinjaTrader, which displays strength via line thickness. Stronger levels are thicker or overlaid, reflecting significant price zones. The speaker explains that breaking through these volume and price-based levels, especially the volume point of control, is favorable for short positions, with trend monitors confirming the bearish outlook.

11:27

On the one-minute chart, the market moves through several support zones and low volume nodes quickly, indicating little resistance. However, as volume builds in a lower price region, a new volume point of control emerges, signaling price agreement between buyers and sellers. This congestion phase suggests no strong directional bias, reflecting a balance in market sentiment as confirmed by the trend monitor.

13:25

Trend monitor signals and reversals

13:25

The speaker explains a classic color change in a trend monitor used to analyze market trends. The trend shifts from a bright blue uptrend to a dark blue congestion phase, then to dark red indicating a potential primary bearish reversal, and finally to bright red. During pause points in the trend, the color darkens but suggests a temporary pullback rather than a full reversal, advising patience. This analysis is combined with volume profiles, support, and resistance for comprehensive context.

14:18

The discussion highlights how the trend monitor behaves differently across multiple time frames. On a 15-second chart, a small upward run may be seen, which is relevant for scalpers who trade rapidly. These quick pullbacks and reversals, insignificant on longer time frames, are meaningful to traders focusing on short-term movements. The speaker emphasizes that if a full reversal occurs, the trend monitor will confirm a market rise, illustrating the dynamic nature of trend detection across different trading horizons.

15:22

The trend monitor on the one-minute chart shows a darker color indicating congestion around the volume point of control, which is expected. Longer time frames like the three-minute, five-minute, ten-minute, and daily charts show little to no change, reflecting their distance from short-term fluctuations. On the daily chart, the trend monitor remains bullish, demonstrating that short-term movements on faster charts have minimal impact on long-term traders focused on daily trends.

16:22

Daily chart key levels and volume analysis

16:22

The speaker analyzes a price chart showing repeated failures at a key resistance level over several months, highlighting a double top pattern and price crashes. They discuss the importance of watching for a break and hold above this level for a potential long position, or alternatively, considering a short position if the price reverses. Volume analysis shows decreasing volume as the market rises, which may indicate weakening momentum. The segment emphasizes that chart analysis principles are consistent across different time frames, from scalping on 15-second charts to longer-term trading.

18:17

The discussion shifts to trading psychology and personal trading styles. The speaker stresses the importance of understanding one’s own strengths, weaknesses, and available time to trade, noting that different traders have different approaches. They mention that indicators can be customized, such as adjusting look-back periods and sensitivity, to better fit individual trading strategies. The importance of using reliable data feeds, such as the recommended Kinetic data feed with NinjaTrader, is also highlighted for accurate and timely information.

21:18

The focus turns to ongoing trades in currency pairs like the pound and the Australian dollar, emphasizing patience through pullbacks and using tools like the trend monitor to stay in trades. Alerts on CSI charts, particularly on 10-minute time frames, are used to anticipate key crossover points. The speaker discusses using Renko charts to identify momentum and entry points, with an emphasis on tailoring entry aggressiveness and position size to individual risk appetite and market conditions.

23:01

The segment highlights the discretionary nature of trading, noting that while patterns and price actions repeat, their context changes with market conditions and speed. Renko charts are praised for capturing momentum by showing price moves in fixed increments, with the pace of these ‘bricks’ indicating market speed. The speaker explains how price often pauses or retests key levels, such as the volume point of control (VPOC), and how traders must discern if pullbacks are temporary or signal major reversals, especially around session openings like London.

25:14

Further analysis of multiple indicators and time frames is provided, including Camarilla levels and price action on 3- and 10-minute charts. The speaker notes how alerts can signal potential short or long positions but cautions against relying on a single signal. They explain how buying support appears through candle wicks and volume spikes, and how market momentum and minor reversals can appear as ‘kickbacks’ after fast price moves, with price declines often occurring more rapidly than rises.

27:45

The speaker discusses conflicting signals from different time frames, such as the 10-minute and hourly charts, which can show opposing trends. They emphasize the importance of choosing and consistently watching specific time frames to avoid confusion or premature decisions. The potential for reversals is linked to trading above or below key Camarilla levels (like R3), and the segment stresses patience in observing how price and volume behave around these critical points before committing to a trade.

30:00

Closing the segment, the speaker notes that the pound is showing sideways and slightly downward movement, with the 83.52 level acting as key support on Renko and other charts. They stress that for the downtrend to continue, this level must be broken. The speaker prepares to transition to futures market analysis while acknowledging the audience’s patience, indicating ongoing detailed technical analysis across multiple platforms.

31:16

Futures market overview and currency pairs

31:16

The speaker moves to a futures workspace showing various currency pairs such as the Aussie dollar, cable (pound dollar), and CAD dollar (inverted). They explain how these futures reflect dollar movements and can be used similarly to spot trading. The dollar is currently selling off strongly, with the New Zealand dollar rising and the pound flattening. These futures pairs tend to move in the same direction, which is useful for trading and shorting opportunities.

32:12

The discussion shifts to other currency futures like the Eurodollar and dollar yen, noting that the dollar yen behaves uniquely and does not follow typical dollar movements, making it one of the trickiest pairs to trade. The data shown includes yen dollar (inverse) and New Zealand dollar futures, highlighting strong buying strength in the New Zealand dollar.

33:14

Focus turns to analyzing resistance levels for the New Zealand dollar futures. The speaker emphasizes the importance of identifying clear resistance and volume points, noting that the current price is approaching a volume point of control which may limit further upside. Multiple resistance levels suggest the market may enter a range-bound phase unless it breaks through these barriers.

34:06

The speaker examines dollar selling and futures reversals, particularly in the cable (pound dollar) futures around the London open. Heavy initial selling volume triggers volatility, but this selling pressure diminishes as volume decreases. This suggests weakening sell-side momentum, which is important for assessing the sustainability of potential rallies.

35:02

The volume analysis continues, showing that selling pressure is fading while a potential rally is developing. However, the New Zealand dollar’s upside is limited by strong resistance levels. The pound is also influenced by Brexit-related uncertainty. Attention then shifts to the Aussie dollar, which appears more promising due to breaking key volume points and trend indicators signaling strength.

35:52

The Aussie dollar futures have broken a significant resistance level supported by strong volume and price action alignment. There is some price-based resistance ahead but also areas of low volume that may allow easier price movement. A solid support platform below provides a potential stop-loss area to manage risk if the market reverses.

36:49

The Aussie dollar is currently overbought on the 5-minute chart, prompting traders to consider longer timeframes for better perspective. The speaker notes that whether trading futures or spot markets, the principles of volume price analysis, multiple timeframes, and indicators remain consistent. The discussion closes with a look at the CAD dollar futures, which show rising volume and a breakout above resistance, suggesting a potential short-term upward move.

38:14

Renko charts and combining timeframes

38:14

The speaker introduces the use of multiple Renko charts as a powerful method combining time-based and non-time-based charts. They highlight recent volatility possibly related to Brexit, emphasizing the need for a good news feed when trading the pound. The Renko optimizer adjusts brick sizes dynamically, shown here with changes from 1.9 to 2.7 pips on a 15-second chart, blending different time intervals to capture market activity.

39:13

The segment explains how the Renko charts provide momentum insights by building bricks based on price movement rather than time. When a price moves 2.7 pips, a brick closes and a new one forms, unlike time-based charts that close bricks after fixed intervals. This approach combines volume price analysis, volatility triggers, and multiple indicators to give a comprehensive view of market conditions.

40:12

Renko charts reveal momentum and trend development more clearly than time-based charts, which show more oscillations and volatility without isolating price movement components. The speaker describes Renko as deconstructing time-based candles into their essential price action elements, providing a deeper inside view of trends. This method is a key part of their trading workspace and is highly recommended for understanding market behavior.

41:12

Resources, indicators and trading programs

41:12

The speaker wraps up the session and directs viewers to Anna at thecooling.com and Amazon for books available in both Kindle and paperback formats. They mention where to find trading indicators on quantumtrading.com, MT4/5, NinjaTrader, and TradingView. The speaker notes that while TradingView is not fully updated yet, they are monitoring the VIX index, which is currently high at 28.7. They also announce the upcoming launch of TradeStation indicators, which has been a significant effort and is expected by the end of the month.

42:10

Post-TradeStation launch, the team will focus on porting missing indicators to TradingView, including the currency matrix, array, heat map, VPOP, and support and resistance tools. Those who have purchased the full TradingView package will receive these upgrades free of charge. Once completed, the TradingView package price will align with MT4/5 pricing at around $894, up from approximately $600, with free upgrades offered to past and near-future purchasers.

43:02

The speaker highlights ongoing development of new indicators and a focus on TradeStation for stocks and order flow analysis. Plans for porting to MultiCharts next year are also mentioned. They introduce the comprehensive Forex education program at quantumtradingeducation.com, which covers all essential aspects of trading with confidence. The program includes a full suite of indicators and offers full credit for previous software purchases towards upgrades.

43:58

The education program comprises core modules on psychology, fundamentals, relational and technical analysis, and trading mechanics, along with extensive additional content such as examples, indicator usage, webinars, and resources totaling around 250 hours and over 440 lessons. Completing the program equips traders with full confidence and understanding in Forex trading. The session ends with thanks, a reminder of the next session’s time, and well wishes for the trading day.

By Anna Coulling – creator of volume price analysis