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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.

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In this 4-hour chart, there are six candles so that each box = 1 day

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.’

Up, down and sideways price action

2-box combos give a general idea

 

Attitude check: ‘Prices up for 3 days already so its a 3-day trend!’

Strategies for trending and range

3-box combos reinforce observations

 

Eye check: ‘ This definitely looks different.’

Reversals

If it looks different, it must feel different

 

Overlay multiple time frames in one chart so we know where in the bigger picture

Multiple time frame

Putting them together to visualise interaction different time frames

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’.

“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.

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