Utilize multi-time analysis in trading - page 2.

wxa7115

hero member

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Quote from: taynguyen_cry on July 24, 2021, 01:41:26 AM

Most traders pick their one time-frame and then almost never leave it. They are so locked into their timeframe that they forget about the bigger picture.
The other extreme are traders that constantly jump from timeframe to timeframe without much of a plan. Those traders are mostly driven by emotions and trade very impulsively.
A better approach is the top-down multi timframe analysis where you start on the higher timeframe, look for the bigger picture perspective and then slowly build your trading plan by going lower.

Some trading books recommend that strategy and I agree with them, many traders are only interested on the time fame they trade and they get lost on the ups and downs on that time frame.

But many times you can tell the overall direction of the market by looking at a slower time frame, this means that you will most likely make less trades that go against the overall trend and more that go with the trend and this can only benefit you as you loss less often while you win more regularly.

Maus0728

legendary

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Isn't it the appropriate thing to do as a trader? I mean, regardless of the type of trader you are, starting from a larger time frame and working your way down to a smaller time frame is a must-have practice.

When looking at the weekly timeframe, you can determine whether an asset is in accumulation or distribution as its current market meta. This will provide you with a basic notion of the market's current global trend.

And, in most cases, utilizing different time frames will enable you to identify which levels are relevant as well as their strength. This means that a 15 minute level is weaker than everything below it, while an hourly level is weaker than a daily level. All time frame are relevant with each other.

Wind_FURY

legendary

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Quote from: taynguyen_cry on July 24, 2021, 01:41:26 AM

Most traders pick their one time-frame and then almost never leave it. They are so locked into their timeframe that they forget about the bigger picture.

If a trader bought using the daily time frame, it obviously will never make any sense at all to use the hour by hour time frame to sell. He/she should lock on it.

Quote

The other extreme are traders that constantly jump from timeframe to timeframe without much of a plan. Those traders are mostly driven by emotions and trade very impulsively.

A better approach is the top-down multi timframe analysis where you start on the higher timeframe, look for the bigger picture perspective and then slowly build your trading plan by going lower.

That depends on you, and what you want to do, and if you believe it fits you. But if in doubt, you should always zoom out. Cool

Alisha-k

member

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Top down analysis has always been what the big profit makers in trading use. It's just as simple as op stated get the big picture from higher time frames then come back to the smaller time frame to get a good entry point to join the trend. Multi-time for analysis is really inevitable and it profit more than just analysing within few minutes.

so98nn

hero member

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Idk, I guess you talking about the longer holding periods for the coins? When you say big picture and perspective in terms of timeframe then that refers to HODLING strategy. Thus, more or less you are just holding the crypto coins and awaiting the market to go beyond our break even point. This would be successful all the time as long as you don't implode with your emotions while making the trades.

Thinking about the bigger timeframe can be achieved only with perfect plan.

I'm not sure how we can squeeze in multi-time analysis here, it makes the trading ways more flexible.

defi-Dany

jr. member

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I am not good at analyzing technical indicators. I rely on market trends, market sentiment, etc.
I think short-term traders need to look at technical indicator data, long-term investors only need to look at trends, and there are black swan events.

hugeblack

legendary

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All technical analyzes are based on analyzing past data to infer patterns for the future, and therefore it is multi-timeframe if you choose long-term averages.
The problem is that long-term averages give results that are more than accurate because they combine variables that have become useless, and close averages are more accurate because they combine recently updated data.

Therefore, technical analysis requires taking into account many factors to be accurate, not just one or two indicators.
The time methods in it differ according to the goal, and sometimes the adoption of several spaced time frames is inaccurate.

taynguyen_cry

jr. member

Activity: 126

Merit: 1

Most traders pick their one time-frame and then almost never leave it. They are so locked into their timeframe that they forget about the bigger picture.
The other extreme are traders that constantly jump from timeframe to timeframe without much of a plan. Those traders are mostly driven by emotions and trade very impulsively.
A better approach is the top-down multi timframe analysis where you start on the higher timeframe, look for the bigger picture perspective and then slowly build your trading plan by going lower.

Topic: Utilize multi-time analysis in trading - page 2. (Read 192 times)