Multi timefame analysis (10)

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In this course, we’re going to pull together all the individual strands of technical analysis – indicators, price patterns, candlesticks, support and resistance – and show you how to combine it to build the evidence towards placing a trade. When there is enough solid technical evidence, then we trade it.

Multitimeframe analysis

Multi timeframe analysis involves analysing a market across different time frequencies. We have an excellent multi-chart tool for doing this in the MYTS Community.

Trading vs trend analysis timeframe

Traders should always have a trading timeframe. This is the timeframe they use initiate trades and manage risk – look for candlestick patterns, get confirmations of patterns, set up indicators in, set stop-losses, set limit orders and so on.  Traders should not trade in more than one timeframe, there would be contradictory setups and it would be very confusing.

Trend analysis timeframes are not to be confused with the trader’s trading timeframe. Trend analysis timeframes are longer timeframes in which trader is analysing the prevailing trend. Think of this as a surfer catching waves – while each wave is what they surf on, before they even go out they know the direction of the tide. This is what we are doing when we work out the prevailing trend – we are taking a step back and looking at the direction of the tide.

Timeframe setups

Your trading timeframe determines your trend analysis timeframes, as follows:

Traders should analyse and know the direction of the prevailing trend every time they trade. However, regardless of the trading and trend analysis timeframes, they should also have a feel for even longer-term trends, to get a holistic view of a market. While the scalper doesn’t have to check the long term primary trend every time they trade having an appreciation of it will help them.