Combine multiple time frames in one chart for trading many markets
If you are confused by multiple time frames all the time
Where one time frame is down, two are up and three going nowhere, consider this method that we teach our community to analyse the market.
Boxes can be drawn to represent time periods like minute, hour, day, week, month and so on.
So a chart that has hourly candles can have boxes showing a 4-hour overlay; a chart that can daily candles can be overlaid with boxes that show weeks, months and years and so on. It trains our eyes to see the bigger picture and to reconcile different setups in multiple time frames.
How to apply?
Memorise the following rules by hard. Logic check: ‘Since this week is higher than last week, market is up.’
Attitude check: ‘Prices up for 3 days already so its a 3-day trend!’
Eye check: ‘ This definitely looks different.’
Overlay multiple time frames in one chart so we know where in the bigger picture
Where to apply?
Forex, stock index futures, stocks, commodities and so on.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.