Multi Time Frame And Renko

Hey guys, today I’m going to show you one of the ways I trade. It’s been a bit slow this month with the London Close Trades, there haven’t been many valid setups.

In the 3 years that I’ve been trading forex and learning to trade, there’s been a lot of lessons – each with varying degrees of usefulness. One of the things that has really helped which I heard quite a few times before I implemented it, is to focus on trading just one pair at a time. As newer traders we’re wanting to trade our way to financial freedom and there’s this impulse to trade multiple pairs so that there are more opportunities. The challenge with this approach is that unless our trading system is truly a dynamite butt-kicker which works in all market conditions, the level of quality setups drops.

Click on this link to see my multi time frame and renko charts. This is all for the Euro, from the top left is the 3 minute, 15 minute, 1 hour, 10 pip renko, from the bottom left is 20 pip renko, 4 hour and daily. (I took this screenshot on my laptop so it’s cut off at the bottom).

This gives me a great overview of what’s happening with the Euro which I like to trade because the spreads are super low (0.9 with Oanda) which is great for scalping , it has a great daily range (lots of movement each day) and I can also watch the dollar index for additional info.

We are bombarded with so much information that it is overwhelming and it is confusing at first to do multi-time frame analysis because the signals seem contradictory.

As you focus and watch from this perspective more and more you will get used to the rhythms of the market. If you’ve been fortunate enough to gain some experience slugging it out and taking your losses, you’ll start to get a feel for the personality of the pair.

There’s a great saying “scared money never wins”, the markets kick our butts because of greed and fear.

Everyone wants to sell tops or buy bottoms and make tons of pips but remember picking bottoms makes for stinky fingers. So many traders were short on the Euro last week and it’s just kept going up and up and up. If you were watching all these charts at once and trading what you see, it’s pretty hard to get not see that the market is going up.

One of the things that hurt me the most before with trading is that I would make trades with big stop losses risking say 3 or 4% of my account, but then as the market moved I would move my stop thinking it couldn’t go up anymore and then it would just keep going up and up and I would take a big loss. I don’t imagine I’m the only guy out there who’s done that. Making sure that I never do that again has been very helpful in keeping my account from suffering any big losses.

There’s a cool free ebook by Rob Booker available on the net called Strategy 10, it’s about learning how to consistently bag 10 pips a day. That’s pretty easy to do and it can make you tons of money if you scale up properly. It’s a lot harder to bag 50 pips a day, somedays we do but other days we lose. I think that we can easily get 10 – 20 pips per day if we don’t get too greedy and quit when we’re ahead.