Multiple time frame trading forex

Multiple time frame trading in forex

Using the higher time frames to determine what we can expect on the faster charts.

00:13

OPEC meeting and oil price impact

00:13

The discussion begins by highlighting the major event of the day, focusing on the ongoing OPEC meeting. Attention is given to whether an agreement has been reached to cut oil production in order to support oil prices, which directly affects the Canadian dollar. The speaker references monitoring updates via Twitter to track the situation.

00:39

Eurogroup meeting on coronavirus response

00:39

The Eurogroup meeting is focused on coordinating a response to the coronavirus crisis in the Eurozone. There is discussion about an economic package aimed at helping severely affected countries like Italy and Spain, but no official agreement has been confirmed yet. Additionally, unemployment claims are being monitored from Canada and other regions.

01:15

US and Canada unemployment claims surge

01:15

The speaker discusses the severe economic impact in the United States and Canada, highlighting unprecedented unemployment figures. The U.S. is experiencing massive job losses, with numbers reaching around 10 million in recent weeks, while Canada’s unemployment rate has risen to 7.8%. The Federal Reserve’s response is described as frantic and extensive, attempting to mitigate the economic fallout amid this crisis.

02:23

Fed’s response and economic outlook

02:23

The speaker discusses the containment of a situation, emphasizing that effective control measures prevent severe outcomes until a vaccine or comprehensive testing becomes available. They mention the importance of understanding who has been exposed or infected. Additionally, the speaker references Nouriel Roubini, known as ‘Dr. Doom,’ praising his accurate predictions, and briefly mentions the author of ‘The Black Swan,’ Nassim Taleb.

02:52

Nouriel Roubini’s recession predictions

02:52

The speaker discusses two leading economic forecasters who have predicted potential outcomes for the continent amid current events. One forecaster launched a new site called NourielToday.com and recently gave a 45-minute presentation outlining the current economic situation, what has happened so far, and potential future scenarios. According to him, there are two possible paths: either a very deep recession or a depression. The final outcome depends on how well the pandemic is controlled and when normality can return.

04:02

Volume price analysis and time frames

04:02

The speaker refers to a presentation available around April 1st and another on the 8th, mentioning a nominal fee to access Roubini’s explanation. The discussion centers on Volume Price Analysis (VPA), which integrates price and volume data to understand market behavior through three fundamental laws: supply and demand, cause and effect, and effort versus result. VPA uses price volume candles and candle patterns over time. The speaker also introduces the concept of multiple time frames in trading, explaining how trends in slower time frames influence price action in faster ones. Additionally, support and resistance levels are emphasized as crucial components of volume price analysis and overall technical trading strategies.

05:15

Support and resistance in trading

05:15

The segment explains the concepts of support and resistance, emphasizing that these can be based on price or volume. It introduces ‘Camarillo levels,’ a feature available in the quantum package, and suggests illustrating these concepts using charts. The example focuses on the daily chart of the Australian dollar, showing a clear trend indicated by consecutive up candles, highlighting how to identify a discernible market trend without yet considering volume profile indicators.

06:13

Aussie dollar daily chart trend analysis

06:13

The speaker explains the importance of analyzing price from the perspective of trend, highlighting that the current market is in an uptrend rather than congestion. Using Renko charts, which are non-time-based, helps identify true trends by filtering out choppy, whipsaw price action. In faster timeframes, traders should expect corrections and pullbacks within a primary trend. Volume Price Analysis (VPA) is used to confirm whether these pullbacks are minor trends or indicate a reversal, supporting better entry timing.

07:21

Traders using faster timeframes and non-time-based charts like Renko need to wait for VPA confirmation that a pullback is minor before the primary trend resumes. This is when support and resistance levels become useful in identifying potential trade entries. The speaker illustrates this with examples of pullbacks in an uptrend, noting that price rarely moves in a straight line and that indicators such as trend dots help signal potential entry points when they align.

08:22

The discussion continues on using trend dots and monitors on Renko charts to identify trade entries, emphasizing the importance of matching these indicators. Support and resistance levels help confirm likely movement direction. Even in very fast trading scenarios, such as second charts, pullbacks can be tradable for small gains. On slightly slower minute charts, traders can observe congestion and minor pullbacks, which help determine when the trend is ready to continue.

09:23

The speaker notes how trend dots transition color to reflect ongoing price action, indicating the trend’s strength without signaling a reversal. This visual confirmation, combined with time-based charts, assists traders in anticipating market direction. The example of the Australian dollar demonstrates that trading within clear trends reduces risk, as the likelihood of sudden, false reversals or whipsaws decreases, allowing for more confident trade decisions.

09:57

Pound New Zealand chart volatility

09:57

The speaker explains how analyzing slower time frame charts, like daily charts, can provide insights into the trading experience on faster time frames. Using the pound-New Zealand daily chart as an example, they highlight the presence of volatility clusters and congestion zones characterized by whipsawing price action, indicated by candle wicks at highs and lows. This choppy movement suggests that faster time frames will exhibit more erratic and risky price action, with frequent opportunities to go long or short but increased risk and shorter trade durations. The slower time frame trends help anticipate the nature of trading in faster time frames, emphasizing the importance of support and resistance levels across all time frames.

12:08

Renko charts and trading strategy overview

12:08

The speaker discusses analyzing price action using Renko charts, focusing on a consolidation phase and resistance levels in the Aussie dollar market on NinjaTrader 8. They highlight the importance of pivots in marking congestion areas and note that the price has broken through a significant resistance level (R4), with potential to reach the next level (R5). The timing near the end of a trading session or holiday may affect price movement, though there remains a possibility for further gains. The speaker emphasizes the Aussie dollar’s role as a sentiment and commodity currency and invites questions on the topic.

By Anna Coulling – creator of volume price analysis