Multi-timeframe (MTF) analysis is essential, a common pitfall of common sense
This is Pro Trade Coach Max.
Today, we will cut into the analysis method that is treated as the absolute norm in the modernFXindustry as something you must absolutely do.
■【Lies④】MTFanalysis is an obligatory norm but a trap
The “multi-timeframe (MTF) analysis” that builds trading using multiple timeframes. It is taught that you should first do environmental recognition on higher timeframes and then aim for entries. However, this norm also contains a major pitfall.
First1) The first problem is whether you can correctly determine the trend on the higher timeframe in the first place. If the trend direction can be clearly determined on the higher timeframe (for example1-hour), then there should be no need to drill down to lower timeframes; you could win by entering directly on that1hour. However, the fact that people generally do not do so highlights that “trend determination on the higher timeframe is itself vague and difficult.”
And2) the second problem is the superiority of the shorter timeframes (lower timeframes) alone.5If you have not established a valid entry logic that works on the 5-minute chart alone, even if you look at the higher timeframe to narrow the direction, you will get caught in noise and endure unnecessary stop losses.
In short, regardless of which timeframe you use, it is absolutely essential to establish an effective logic on a single timeframe.
In fact, in the environment I run,MTFanalysis is not used at all.5If you trade on a 5-minute chart, you look at only the “5-minute chart” itself. Within that single timeframe, you read the market’s physical laws andRCI, and complete the trading.
■The power of “trading on a single timeframe with market physics”
AIand the internet have created the false path of “you must look at higher timeframes to win.” If you want to break free from this distorted path, check out『TrueRCILeading Textbook』(500yen) now on Gogolabel. The 17 of the most successful traders who completed the RCI6 program all learned this essence, condensed as the “three major professional foresight discriminators” that work on a single timeframe.