Whether you trade from a tick chart or a daily chart, it’s always useful to see price action from multiple timeframes and ensure they’re all telling a similar story. Technical analysis using multiple timeframes is a great way to do this.
Sometimes you’ll see a great setup on an intraday time frame like a 5-minute chart, only to see that the long-term trend on the daily and hourly charts are in the opposite direction. Time frame continuity is just one more way of putting the odds further in your favor.
Technical Analysis Using Multiple Timeframes
Trading is all about putting the odds in your favor in anyway possible. Beyond that, it’s also a game of risk management. Trading with multiple time frames will improve both of those things: it will ensure you’re taking higher probability setups, while simultaneously keeping you out trades where you’re trading against the wind, the trades that can haywire on you quickly.In this article, we’ll go over the benefits of using multiple time frames as a day trader, and how using them can improve your returns, reduce your risk, and even put you in some home trades.