In the forex trading faq today, we have a question from one of our subscribers asking what to do if different time frames on his chart tells him different signal.
Indeed this is something that is pretty common in trading. I must say that the best will be to enter a trade when all the time frames show similar signals. However this will give you little trading opportunity every month.
For me, I always use 2 time frames when I am trading. I use the higher time frame to look for trading opportunity. Once I have a good trading opportunity identified on the higher time frame, I will then move to the lower time frame to wait for a good entry signal.
I will not suggest you to read more than 2 time frames everytime as it will be very confusing. You just need 1 higher time frame and 1 lower time frame and that is it.
All you need to do is to focus on the higer time frame and then wait for good trading opportunity to occur. Once you have an opportunity, you will then move to the lower time frame to look for entry and this will solve your problem of having different signals on different time frame.
I hope that I have answered your question and if you guys have anything to share with us here. Do feel free to give your comment below.