Below is an excerpt from the document of Viet Currency - a professional Trader in the Trading village - instructing how to use multiple timeframes in trading. At the end of the article, summarize again for those who do not understand to make it easier to understand. The article will help you understand some issues in trading such as how many timeframes to use, how to find entry points, how to enter orders, probability of winning or losing.

Usually, scan the market using a 1-hour chart. If you see something strange, dig deeper by switching to the 4-hour chart for a more general view. If it is still beautiful in the 4 hour chart, then go back to the 5 minute chart to see how the price has been in the past time. In this 5-minute chart, look for price volatility. If volatility increases, then there are new business opportunities. The currency market is a news-drive market (= market driven by the news). And the impact of news on this market is usually about 45 minutes or less. So within 45 minutes, that volatility is still strong, then it's time to go out. Otherwise, it is considered as missing a ferry. In the meantime don't use indicators because indicators are always laggy. Only use it AFTER you already have a set of data. In a 5 minute chart with increasing volatility, it is recommended to use TA formations, especially candlesticks (3-bar formations). Done, watch the momentum indicators one last time just to be sure.

Don't focus too much on the indicators, in the beginning, get the formations first. Once you have a formation, it's easier to do business. Probability 55% of the time. That is average. Unlucky 45% or less. Probability per trade is not as important as going for money. Do you understand what it means to go for money? It means that when you jump in, it doesn't matter whether you win or lose because the cut loss is very quick. Many times when you jump in, lose 5 pips and you give it away. So, if it is a percentage, it is very low. But on the contrary, if you finish entering and see about 20 pips up and the market is as you expected, then jump in 10 times more than the first time. That's called making money. Trading, you have to remember, it's not the NUMBER of times you win, but the MONEY you win.

Explain as you understand

Regarding choosing Timeframe, Mr. VC uses 3 timeframes when trading: time frame to trade (H1 frame), time frame to see the general situation (H4 frame), and time frame to enter orders (M15 frame). Looking at the general situation on H4, find anomalies on H1 and enter an order at M5. In M5, you will see whether price volatility is strong or weak, strong to play, weak not to play. Because surfers need strong fluctuations. If there is strength, the price will go quickly. But if the volatility is weak, if you enter the order, you will be able to sit and hold the order for a long time. Both tiring and risky.

When entering orders on M5, do not use the indicator because the indicator will be slow (because you have to wait for the price to finish drawing the indicator). At this time, you should use a candlestick pattern, type 3 candles (morning/evening star, three white soldiers, three black crowns.) to enter the order. Then look back at the indicator for confirmation and then enter. Thus, prioritizing the price action, the latter indicator at the time of entry.

Note that VC likes to use the number 3: 3 timeframe, 3-candle pattern.

The probability of winning a trade that is good is about 55%, and worse, it is about 45%. What is important is money management - money management or risk management - in trading, not the number of wins and losses.

The most important thing in trading is the amount you win, not the number of times you win (too true). The number of wins usually only works ... to show off, and the money you win has the effect of trading for a living (trade to make money going to the market).