MTF Forex indicator can be used as a filter that displays information from several timeframes at once on one chart. Many traders find it very convenient while analyzing the current market situation.
Very often, you can see the letters MTF in the name of an indicator, which beginners simply consider as part of the name, not realizing that they in fact carry a description of a rather powerful and useful function built into the indicator.
Today we will talk about what an MTF Forex indicator is and how it works in practice.
What is MTF Forex indicator?
The letters MTF in the name of the technical indicator stand for Multi Time Frame. This means that the indicator is able to display its values from other time frames on the current price chart.
In order to analyze the market situation, a trader should check the trend at several higher time frames before entering the trade because it can be just a false short correction. This is a technically literate approach to trading. For example, on the M15 chart a trader should check daily, weekly and monthly lows and highs, in other words, support and resistance levels.
If a trader ignores the situation on higher timeframes, then the probability of a false entry increases significantly. An MTF forex indicator aims at simplifying the analysis and processing of information from several time frames at once.
Of course, a trader can simply switch between the timeframes, tracking the indicator values. But a trader will become tired of doing this very quickly, especially if he prefers a scalping strategy. Here an MTF Forex indicator comes to the rescue.
Read about main trading strategies here
3 Types of MTF Forex Indicators
There are no standard MTF indicators in the MetaTrader 4 terminal set, however, there are a lot of custom ones that you can install additionally. In fact, the MTF function can be implemented in almost any indicator.
All MTF indicators are divided into several groups:
Informational
This type of MTF Forex indicators does not draw anything on the price chart and does not give any trading signals, but simply collects and displays the required information: trend direction, signal strength, etc.
I included an informational MTF indicator to one of my own trading systems: Titanium Scalper has a very convenient MTF scanner that displays an overall trend on 12 currency pairs at once!
Graphical
Graphical MTF Forex indicators display the behavior of the indicator on other timeframes. They can be any trend indicators or oscillators.
Signal
Signal MTF Forex indicators convert the display of indicator values into lines consisting of dots and display them in the footer of the price chart. The coincidence of the indicator values on several timeframes is regarded as a signal to enter / exit or one of the necessary conditions.
Conclusion
The main advantage of MTF Forex indicators is clear – it is the convenience of chart analysis without switching timeframes and the ability to use such indicators as a source of trading signals or a filter for a trading strategy.
To my mind, this is an effective tool for analysis and trading, the proper use of which can increase the accuracy of trading signals and bring additional profit.
You can download all 3 MTF Forex Indicators below:
P.S. Have problems with installation? Email me at olivermurphy@altraforex.com or support@altraforex.com
I would love to help!
Thank you, sir. The article is very useful
Hi, Oliver! Thank you for the post! I have to admit, I never thought about these letters although I use such indicators a lot 😀