Why multiple timeframe analysis is important in currency trading?
If you want to develop a big picture, first take a look at the higher timeframe.
This gives you the picture of the main trend. On lower timeframe you will find price moving against the main trend.
If you trade in that direction which is against the main trend, most of the time you will end up losing.
Always trade in the direction of the main trend on the higher timeframe.
When price align with the main trend on the lower timeframe, you can open a trade.
Using the lower timeframe can help reduce the risk.
Avoid trading against the direction of the trend on the higher timeframe.