The forex market is a huge market and every single day the number online traders in the financial market is increasing at an exponential rate. If you look at the professional traders in the United Kingdom then you will notice that most of them are trading the live assets with the reputed brokers like Saxo since they offer robust trading platform along with the excellent trading environment. Though there are many different ways of trading the financial instrument in the world but mastering the art of CFD trading is not at all easy. In order to make a profit in the forex market, you need follow all the essential trading parameters to secure high-quality trades in the market. The expert in the forex industry uses many different techniques to filter the best possible trades in the CFD trading industry. IN this article we will learn about the perfect way to do the multiple analysis in the market.
Use the higher time frame
The financial instrument can be traded in two different time frames and that is the higher time frame and lower time frame. Most of the novice traders in the forex market tends to trade the lower time frame since it gives lots of trading signals to the traders. But trading is not about high frequency rather it about quality. So in order to secure the best possible trades in the market, you need to use the higher time frame in the market. The expert in the forex industry uses the higher time frame to execute their trades in favor of the long-term trend in the market. But when you look for trading signals in the market make sure that your analysis the daily and weekly time frame in order to avoid the false signals in the market. Basically, you will do the multiple time frame analysis in the daily and weekly time frame to eradicate the false signals in the market.
Sue price action signal
Price action trading strategy is considered to be one of the most reliable trading strategies in the word. The professional traders in the forex trading world use the price action trading signals to trade the key support and resistance level in the market. But when you look for price action confirmation signal in the CFD trading industry make sure that you do the multiple time frame analysis. First of all, find the long term existing trend in the daily and weekly time frame and after that draw the key support and resistance level in the market. Once the key support and resistance level in the market is drawn use the candlestick pattern to execute high-quality trades in the market.
Use the moving average
The simple moving average is one of the most popular indicators in the forex market. The professional traders in the financial market use the 100 and 200 days SMA to execute their trades in the market. So when you do the multiple time frame analysis find the prevailing trend in the market by using the 100 and 200 days moving average. For instance, if you look for short setup in the market then in all the higher time frame price must be trading below the above mentioned two moving average. Once this condition is full filed you should look for price action confirmation signal in the market to execute your trades. Though 100 and 200-day moving average is one of the most used moving averages in the market but you can also use other moving averages to trade other currency pairs in the market. But don’t use any new moving average in the market without back testing it.