Master the art of looking at the same asset through different lenses. The higher timeframe is the boss. The lower timeframe is just the employee carrying out the orders.
For more information, research Brian Shannon’s trading methodologies. Share public link Master the art of looking at the same
For example, instead of buying a breakout blindly on the hourly chart, you might drop to a 15-minute chart to wait for a pullback to support. This allows for tighter stop losses and better risk-to-reward ratios. By applying the concepts and techniques outlined in
By applying the concepts and techniques outlined in Shannon's book and this paper, traders and investors can improve their technical analysis skills and make more informed trading decisions. To apply multiple time frame analysis
Shannon argues that looking at a single time frame is like viewing a mountain through a paper towel roll. You see the rock face directly in front of you but have no idea if you are near the summit or the base.
To apply multiple time frame analysis, traders can follow these steps:
If you trade based solely on a 5-minute chart, you are trading in a vacuum. You cannot see the larger forces—at play on the daily or hourly charts—that are dictating the direction of the market.
Master the art of looking at the same asset through different lenses. The higher timeframe is the boss. The lower timeframe is just the employee carrying out the orders.
For more information, research Brian Shannon’s trading methodologies. Share public link
For example, instead of buying a breakout blindly on the hourly chart, you might drop to a 15-minute chart to wait for a pullback to support. This allows for tighter stop losses and better risk-to-reward ratios.
By applying the concepts and techniques outlined in Shannon's book and this paper, traders and investors can improve their technical analysis skills and make more informed trading decisions.
Shannon argues that looking at a single time frame is like viewing a mountain through a paper towel roll. You see the rock face directly in front of you but have no idea if you are near the summit or the base.
To apply multiple time frame analysis, traders can follow these steps:
If you trade based solely on a 5-minute chart, you are trading in a vacuum. You cannot see the larger forces—at play on the daily or hourly charts—that are dictating the direction of the market.