This forex strategy is based on using three different indicators across three different time frames to produce the trading signal and has one of the highest probabilities of success.
Using the Tiger Time Lanes forex trading signals software we watch for a new session or swing low to be made on the 15 minute time frame. When price begins to retrace from this point we then look for the L7 level on the 1 minute time frame, the L3 level on the 5 minute time frame and the L1 (one minuet disc) to coincide at or around the same price point. When price gets back to this point the trade is triggered.
What is the optimum entry?
There are several factors that need to be taken into account when looking to enter a Multi Time Frame Combination trade. When there is little price action, the alignment can appear frequently, giving false signals. It is important that a reasonable move has taken place before price begins to retrace. This should mean that the L1 and L2 (represented by red and green discs) are at least 7 or more pips away. The greater the distance the greater the probability of success. The second element to look at are the white zones for these time frames. If the three white zones are expanded and are close together then this is a sign of limited PA and reduces the chance of success.
What else do I need to consider?
As with all Forex trading strategies you also have to consider the reasons for the move. If there has been a major news release, such as Non Farm Pay Roll, the prices is likely to fluctuate wildly. In this situation it would not be advisable to take the trade. It is imperative when trading to try to ascertain the reason for a price move, news, rumor or because stops have been triggered. In addition it is also useful to note the prevailing trend of the 15 minute and hour charts as if the signal is with these trends then it again increases the chance of success.