The MTF Trading Method
The MTF method gives you the bigger picture. Because instead of trading off of just one chart, we use three.
Each chart has its own timeframe and indicators, but by accounting for more than one time frame you get a much better look at the bigger picture of what’s happening.
And that will help you make winning trades, and filter out most of the losers.
Before we get to the trading system itself, let’s first talk about why you need the MTF system.
The Conflict – Why Multiple TimeFrame (MTF) Trading
At one point or another, most traders do eventually come up with methods and systems that work with the trends.
Trading with the trends simply makes sense.
It isn’t that you can’t find a system that works for trading in ranging/sideways markets, it’s just that trading long in an uptrend, or short in a downtrend, seem to be EASIER and have a better chance of success.
Even trading with the trends has its own problems. The biggest issue that you have to deal with is what I like to call the conflict.
It doesn’t matter what trading system you use to trade with, the conflict is always there.
To explain what I mean by “the conflict”, let’s look at some charts. On the daily USD/CAD chart to follow, the currency pair is clearly in a downtrend:
The candles on the daily chart, the exponential moving average shown, and the ADX indicator all point to the idea that the currency is in fact in a downtrend... and has been for a while.
Where the conflict comes into play is when I look at an hourly chart for the same currency pair:
Looking at the chart above, we get an almost opposite picture of what the daily chart displayed. From the looks of the candles on the 1 hour chart, and the fact that the EMA is pointing up I get an indication that the currency pair is in an uptrend.
This is what I call the conflict.
Our daily charts and the indicators on it indicate one thing... but on a different timeframe points towards something else entirely.
To overcome this conflict a good trading system should account for it.
So let’s give you one.
HOW TO USED Enlightenment FX Indicator ?
It's pretty SIMPLE.
If the indicator is GREEN, the market is trending up.
If the indicator is ORANGE, the market is trending down.
If the indicator is YELLOW, this is a sideways market.
The whole process looks like this:
If the indicator is GREEN, the market is trending up.
If the indicator is ORANGE, the market is trending down.
If the indicator is YELLOW, this is a sideways market.
The whole process looks like this:
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Disclaimer: Futures, forex, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the information on this website will generate profits or ensure freedom from losses. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
U.S. Government Required Disclaimer - Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur.
Disclaimer: Futures, forex, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the information on this website will generate profits or ensure freedom from losses. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
U.S. Government Required Disclaimer - Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur.
