Introduction to the Multi Timeframe Indicator
Most traders trade with a single perspective. They are hyper-focused on trading a single timeframe without considering what the market is doing on a bigger scale. Seasoned traders however know that it is very important to trade with both the short-term and long-term perspective in mind. This is why most seasoned traders trade on a multi timeframe type of strategy.
Most seasoned traders make trade decisions based on three different timeframes. One would be their main timeframe chart, one would be a chart for a long-term perspective, and another chart for trade setups for a more precise trade entry.
What is the Multi Timeframe Indicator?
The Multi Timeframe Indicator is an indicator developed to provide traders a snapshot of price action across multiple timeframes.
This indicator creates a separate indicator window where it would display price action based on three other timeframes. It plots three sets of Japanese candlestick price charts which comprises the last 30 candles from other timeframes. As a preset, it plots lime bars representing bullish candlesticks, and red bars representing bearish candlesticks.
How the Multi Timeframe Indicator Works?
The Multi Timeframe Indicator simply retrieves the price data of the last 30 candles of the three chosen timeframes coming from the broker’s price feed. It then plots lines with varying thickness with heights based on the price data. This creates bars which resemble a Japanese candlestick.
The indicator repeats this process for the three chose timeframes creating a price action snapshot displaying 30 bars each timeframe.
How to use the Multi Timeframe Indicator for MT4
This indicator allows traders to choose the three different timeframes it would plot in its indicator window.
“TF1” represents the timeframe on the left, “TF2” represents the timeframe on the center, and “TF3” represents the timeframe on the right. These options have dropdown boxes wherein traders can choose their preferred timeframes.
It also allows traders to modify the number of bars which would be displayed per timeframe on the “BarsPerTF” variable.
It is also important to note that the colors of the candles can be modified to suit the background of your price chart template. The third color should be the same as the color of your background.
The Multi Timeframe Indicator is not an indicator which provides trade signals and trade setups. It does not indicate trend or momentum direction or overbought and oversold price levels. It also does not plot support or resistance levels or price channels. However, what it provides is a snapshot of price action coming from different timeframes.
For Scalpers, traders can trade on the 1-minute chart, while having a snapshot of what the market is doing on the 5-minute, 15-minute, and 1-hour chart.
Day Traders trading on the 15-minute or 30-minute chart can make use of price action on the 1-hour, 4-hour and even the daily chart.
Swing Traders can trade on the 4-hour chart, while gathering price action information on the daily, weekly, and monthly charts.
Conclusion
This indicator simply provides a snapshot of price action from other timeframes. This information, although not an objective technical indication of what the market is doing, is vital for analyzing a trade. Traders can have an idea of what the market is doing on higher timeframes, as well as lower timeframes, in relation to what the market is doing on the timeframe they are trading on. This would give them a better perspective of the whole market scenario.
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