multiple time frame analysis can make you a better trader
TRANSCRIPT
Take into consideration what is occurring on other
time frames
J.O.B.
You punch in, do what you do, go home,
GET PAID
We've all forced trades because we thought
we had to trade
TraderRisk Manager
Use a multiple time frame
trading approach
PROBLEM
A few things can happen at this level when price comes
back…..
Price can be rejected right at the level
Can pierce through to take the stops and
then fall
It can blow right through it
We operate in the land of “not knowing”
You would have been able to filter even the
best trade signal
Basing at the level
U-turn and move in the other direction
TAKE NOTICE
Not simply reserved for finding roadblocks
It is a100% probability that other traders can see the
exact same levels
What does thatmean for you?
Traders will be looking for breakouts
Traders will be looking to fade the initial move
Trades will be looking to trade the first pullback
after level break
These levels are "in the public eye" for a length of time long
enough to be noticed and acted upon
A pullback trader would have not been in that trade (depending on
their skill level)
Multiple analysis can give you a heads up
on what other traders may be doing
Knowing this may also have you choosing a different trading play on the time frame of
your choice
Let's take the standard pin bar strategy
Daily Chart
WHAT TIME FRAMES TO ANALYZE
Your intermediate time frame is the one you will find your trading setups on. (Example
daily)
Your higher time frame would be a
weekly chart (5 daily charts in a trading
week)
Your lower time frame would be hourly chart (5-6 hours in a trading
day)
DRAWBACK OF DIFFERENT TIME
FRAMES
"what type of trade will I be looking for?"
What if hourly is showing we had a big correction on the daily and are heading back
to the upside?
Multiple time frame analysis does have
drawbacks
It is true that moves on the larger charts
come from moves on smaller time frames?
www.netpicks.com/traders-who-are-trapped/
Up thrusts and springs can certainly point you
towards the end of accumulation/distribution
on higher level charts
If something stands out, take notice