3 Timeframe Indicator Indicator For MT4
The 3 Timeframe Indicator Indicator For MT4 represent critical data related to CCI, MACD, RSI, and Stochastic. All these data are calculated based on three important time frames and present in the form of a histogram. Bars generating above the reference line indicators bullish momentum and when it generates below the reference line, it indicators selling momentum.
The 3 Timeframe Indicator Indicator For MT4 is a very smart tool that combines three major indicators. The indicator is capable of showing MACD, CCI, RSI, or the stochastic reading for three different time frames in the same indicator panel. The default settings for this indicator is set to MACD.
For the time frame, you will get H4, H1, and M15. So when you look at the reading from the 3 Timeframe Indicator, you will get the accumulated reading for the H4, H1, and M15 data. Based on your requirement, you can easily adjust the key parameters and select the different timeframe for doing the multiple time frame analysis. But the H1, H4 and M15 chart tends to work well both for the short term and long term trading method.
So, you don’t have to change the time frame settings most of the time. But some traders prefer to take the data from CCI, RSI, or the stochastic indicator. They can change the settings according to their need. But the new settings of the 3 Timeframe Indicator must be tested in the demo environment or else you might lose money due to a faulty trading method. People who are ignoring the importance of trading strategy and relying too much on the 3 Timeframe Indicator needs to read about the significance of a well-balanced trading method.
Trading ideas with the 3 Timeframe Indicator Indicator For MT4
Trading ideas are usually generated with the help of an existing trading strategy. If you feel confident enough about your approach, you must learn to trade in a disciplined way. Test your trading skills and try to improve your execution process by evaluating the critical supply and demand zone.
Your edge must be capable of finding the major supply and demand level or else the execution will not be accurate. Most retail trader’s jumps with the lower time frame trading method as they think it will provide them more profit-taking opportunity. But in reality, the traders should always look for conservative actions. Though the 3 Timeframe Indicator is a perfect tool to analyze the data in three unique time frames, the traders have to be careful with their base time frame selection.
Note that the reading from the three unique time frames is taken by the indicator. Unless you take the base reading from the higher time frame, it will be tough to make money. By the termbase reading, we are referring to the actions in which we will analyze the support and resistance level in the higher time frame. Now let’s see how the pro investors are taking their trades with the help of the 3 Timeframe Indicator.
3 Timeframe Indicator Indicator For MT4 - Buy Entries
The professional traders often use the variations of the 3 Timeframe Indicator. Though you can take the trades in different time formats, you must be aware of the support level. Draw the major support level in the higher time frame. Instead of using the RSI, CCI or the stochastic let's stick to the MACD version used in the 3 Timeframe Indicator.
After spotting the buy signal in the chart, get your confirmation from the 3 Timeframe Indicator. Since you are using the MACD version, you should see consecutive green bars on the positive side. Consecutive green bars on the positive side tells us that the bulls are getting stronger. Evaluate the risk profile from the scratch and open your long trade.
But don’t get biased and take the trades during the major news release. If you take trades during on high impact news, you better learn about fundamental analysis. Without having strong fundamental skills, you should be sticking to the basic rules used in the technical trading strategy.
3 Timeframe Indicator Indicator For MT4 - Sell Entries
Now let's come to the process by which we can find the sell signal. In general, the retail traders look to execute their short order at the major resistance level. But taking the short at the weak resistance is one of the key reasons to lose money. People who have strong knowledge about the critical dynamics of the market, always look to execute the short with price action signals.
But the price action needs to be spotted in the higher time frame. If you intend to open the trade in the lower time frame, in that case, you should be taking the trades in favor of the trend. As you locate the perfect sell signal in the chart, you need to get the reading from the 3 Timeframe Indicator. The indicator will show you the exact location to take the short trade.
Once you are determined that the short signals are formed at the right level, get the confirmation. If you use the 3 Timeframe Indicator MACD version, you should be noticing the red bars on the negative side. On the contrary, if you rely on the CCI, RSI, or stochastic indicator, you should rely on the standard method to take the trades at the major levels.
3 Timeframe Indicator Indicator For MT4 - Conclusion
The risk management policy is the most important part to take the trades. If you take your trade-in the wrong manner, you should be prepared to lose money. Instead of taking your trades with high risk, keep the risk below 1%. After learning the proper use of the 3 Timeframe Indicator, you may feel that you know everything about this market.
But remember, the indicator is just showing you the data for three different time frames. The market can react to any time frame based on the economic news event. Unless you are prepared to deal with such events, you should not be biased with the 3 Timeframe Indicator. To achieve the best result, the traders always consider this tool as the filter. At times, they often increase the risk profile but in such cases, they analyze the news data.
News analysis is a proven technique by which retail traders can easily make big profits without having much trouble. So study the important market dynamics and look for the perfect signal from the 3 Timeframe Indicator. Lastly, revise your trading method regularly so that you can professionally use the 3 Timeframe Indicator.