How many time frames do you check before taking a trade?
A common routine uses a higher time frame for direction, a middle one for setups and a lower one to time entries: daily, 4-hour and 1-hour, for example. Other traders work from a single chart and find that extra time frames only create conflicting signals.
What's your routine?
- Which time frames do you use, and in what order?
- What do you do when they disagree?
- Has adding or removing a time frame made a measurable difference in your journal?
Describe your layout in words so others can try it.
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A common way to keep multiple time frames from producing conflicting signals: give each one a single job, and decide in advance what happens when they disagree.
An example routine for a swing trader:
- Daily: direction only. Is price making higher highs and higher lows, lower ones, or neither?
- 4-hour: the setup, such as a pullback to a level in the daily direction.
- 1-hour: the entry trigger and the stop placement.
The rule for disagreement is usually "the higher time frame wins": if the daily is down, long setups on the 4-hour are skipped, however good they look.
A ratio of roughly 4 to 6 between time frames (daily, 4-hour, 1-hour) is often suggested so each adds different information. Checking a fourth or fifth chart tends to add more reasons to hesitate than useful information.
Related reading: trend lines and price channels and support and resistance levels. Members, has removing a time frame ever improved your results?
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