【Expose of FX Lies④】The Pitfall of the Common Belief That Multi-Time-Frame (MTF) Analysis is Essential
Pro Trade CoachMax here.
“Expose the lies of FX series, the4th theme is “Multi-Time-Frame (MTF) analysis.”
MTF analysis refers to a method of constructing trades using multiple timeframes.
“First1 timeframe or higher to recognize the market environment (trend direction),5 minutes and other lower timeframes to measure actual entry timing,” which is common practice.
In modernFX industry, thisMTF analysis is treated as “the basics” and “the absolute necessity.” It may sound very reasonable at first glance.
However, there are serious pitfalls in this “common sense.”
■The difficulty of judging the upper-timeframe trend
First1 issue is whether the trend on higher timeframes can be judged correctly in the first place. In fact, this is not as easy as it sounds.
Think calmly. If the trend direction could be clearly identified on the higher timeframe (for example the1 hour chart), there would be no need to drill down to lower timeframes, and one could just enter on that1 hour chart and win.
■The supremacy of a single timeframe’s edge
2nd issue is the “edge of shorter timeframes (lower timeframes) on their own.” For example, if you have not established a valid entry logic using the 5-minute chart alone, even if you tilt your direction to “only buy today” by looking at the higher timeframe, performance will not improve much. In the end, you’ll get caught in noise and repeatedly incur unnecessary stops.
In short, regardless of which timeframe you use, it is absolutely essential to establish a highly effective logic on the single timeframe itself. It is not a magic property that combining multiple timeframes automatically improves precision.
As a matter of fact, in my schoolMTF analysis is not used at all.If you trade on the 5-minute chart, you only look at the “5-minute chart” itself. Within that single timeframe, you interpret the market’s physical laws andRCI to complete the trade. Even so, the students continue to achieve overwhelmingly strong results.RCI to complete the trade. Even so, the students continue to achieve overwhelmingly strong results.
If you know the correct way to read the market, there is no need to waste time on “upper-timeframe environmental recognition.”
Just one1 screen,1 time frame, and a simple yet powerful skill to identify the market’s truth by yourself using a single chart will be fully revealed in the soon-to-be-released “TrueRCI Leading Textbook” from Gogojan.
Pro Trade CoachMax