The Automatic Trading Software Use Multiple Time Frames

The auto trading software is designed to trade using the multiple time frame analysis. The 1G Profit Review review focuses on using different time frames to increase the probability of a trade. To make money in the market you need to know what the trend is and as an expert will tell you that you should trade with the trend always.

Seeing the trend on just one time frame will not serve the purpose. You will need to see the trend on three time frames to decide on which direction you want to take a trend in.  The trends are classified as a primary trend, an intermediate trend and a short term trend.

A particular asset will be in several time frames at the same time and in the same stock only there may be trends in different time frames that will conflict with each other. The stock may be in an uptrend primarily, but will be in a downtrend in say the intermediate time frame.

 

Most novices will trade using a single time frame and this will get them stopped out often. They will keep analyzing the trend and trade but even though they may be trading with the trend on a particular time frame, they may be stopped out because the primary trend is in the opposite direction. Also even if traders trade with the primary trend, knowing multiple time frame trends can help them refine their entry and exit points.

 

The automatic trading software checks the stock on all the three time frames to be able to predict the price movement better. It focuses on what the primary trend is and gives trades based on the main trend of the stock. It uses the other intermediate and short term trends to fine tune the entry and exit points so that the risk on the trade is lower and the profits are higher.

 

The longer time frame charts are more reliable and the signals that they give should be given preference over the signals given by a lower time frame. The intermediate and short term trends are more polluted and they will have a lot of volatility and false movements. Thus, it is very important that one understands the importance of trading using multiple time frames as it increases the profit potential.

 

Whether you are a day trader, a swing trader or a positional trader you need to define what your three time frames are to be able to trade on the market using the technical charts. The trading algorithm does the same for you once you define your investment style.