Using Multi time frame MT4 Price level Charts

 

Using Multi time frame MT4 Price level Charts

When using support and resistance type techniques we are often asked which time frames are the best to use when using MT4 Price level Charts. Because support and resistance is based on price levels it does not really matter which time frames you use.

There are a few guides to bear in mind.

  1. Support and resistance identified on longer term time frames are of more importance than those identified on shorter time frames.
  2. Also support and resistance identified on short timeframes is often more accurate than if drawn in longer term timeframes.
  3. In general it is better to make decisions using 3 timeframe charts to give you a different perspective of the trading decision.

So what many traders do is they open 3 charts of say 1 hour and 4 hour and Daily to draw support and resistance on each chart. This is fine.

There is however a little trick that I learnt early in my trading career that allow you to do all of the above on 1 chart. Most charting system have a zoom out function and a zoom out function.

So if you are planning to use the Daily chart, the 4 hour chart and the 1 hour charts you could get away with only using the 1 hour chart.

By zooming in you can make the 1 hour chart look like the 4 hours chart

4and1hour

And by zooming in even more you can make the 1 hour chart look like the Daily chart

1htdaily

So you would simply zoom in as far as you can on a 1 hour time frame chart and then draw your support and resistance and that would represent your daily chart support and resistance.  Then zoom out and do the same thing. That would represent your 4 hour chart support and resistance. Then zoom out again and draw the 1 hour support and resistance is that you will have all the levels on 1 chart.

The other advantage is that it is easier to see the true price waves in the market often hidden by the longer term candles.

This does not work when you are using indicators as they a re time frame specific but there is a trick for that too. We will discuss that approach in another article.

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