It's always subjective on to what kind of trader you are and there are lot of factors to consider. Most swing-traders and day-traders I think tend to go on that top-down approach I mean they should be since they tend to do analysis first on the whole market picture and trend before going onto a trade. I think scalp trading doesn't tend to do by this approach, correct me if I'm wrong.
Scalpers too need the top-down analysis to decide how long the scalp in a certain direction it not they get trapped in their trade. If a scalper chooses to trade based on one time frame. They might not really tell how long a candle move in that very direction and might get trapped or enter the trade from a very wrong point 
Topic: Utilize multi-time analysis in trading (Read 200 times)
I have used and found that somehow accurate but I am having better strategies than that hence now into my practices anymore. I like to emphasize that these kind of basic strategies ate always time lagging one hence you may miss out perfect entries and exit levels if you are into active trading. Hence better adopt or derive some pivot point kind of strategies which may help you to enter/exit positions at predetermined levels.
I stopped making use o candle stick patterns for same exact reason; I must say candle stick patterns are good in higher time frame still you cannot catch accurate entry or exit levels.
Unfortunately the ones that are very famous and popular are known by too many people, which means that people who are smart already act better than that and move accordingly. This is the reason why the most popular strategies are one step behind of the action, and yes it could still be profitable but it is not the optimized most profitable method and that is why you should always be careful about what you are doing when picking a strategy.I stopped making use o candle stick patterns for same exact reason; I must say candle stick patterns are good in higher time frame still you cannot catch accurate entry or exit levels.
If you pick the most popular methods then in the long run you will profit but not as much as you could, if you pick a new one then you could either make more profit or you could end up losing money as well. All of these are just methods that you should not be really focusing on because they are just way too risky.
It's always subjective on to what kind of trader you are and there are lot of factors to consider. Most swing-traders and day-traders I think tend to go on that top-down approach I mean they should be since they tend to do analysis first on the whole market picture and trend before going onto a trade. I think scalp trading doesn't tend to do by this approach, correct me if I'm wrong.
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.
I have used and found that somehow accurate but I am having better strategies than that hence now into my practices anymore. I like to emphasize that these kind of basic strategies ate always time lagging one hence you may miss out perfect entries and exit levels if you are into active trading. Hence better adopt or derive some pivot point kind of strategies which may help you to enter/exit positions at predetermined levels.I stopped making use o candle stick patterns for same exact reason; I must say candle stick patterns are good in higher time frame still you cannot catch accurate entry or exit levels.
When you are doing short-term, you should pay attention to the time, you can consider many details. If you don't have much time every day, it is still suitable for long-term investment. Short-term investment time is important.
the process of view of same curancy in different time this is multi time analysis many time larger time used for long term trend and some time a shorter time used for spot entry into market
when we can see a hourly chart then traders can zoom that into 10 or 15 minutes charts the 10 and 15 minutes chart indicate us to entry to short term and where the traders can be monitored go go forward the trend time is you study a hour chart and the and the entry time is 10 or 15 minutes nany day traders can use one hour charts and the long trend basis on the other hand for spot ideals entry traders can use and zoom 15 minutes chart
when we can see a hourly chart then traders can zoom that into 10 or 15 minutes charts the 10 and 15 minutes chart indicate us to entry to short term and where the traders can be monitored go go forward the trend time is you study a hour chart and the and the entry time is 10 or 15 minutes nany day traders can use one hour charts and the long trend basis on the other hand for spot ideals entry traders can use and zoom 15 minutes chart
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.
That is simple, if you could analyze the market so well, you can see everything around it. But if you just focus on the timeframe, you can never see a bigger picture on the market where it was a part of the TA. Some people never think about how it becomes useful because they mostly just follow their instinct and what they feel. This is a big problem and this mostly caught us into becoming an emotional traders. 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.
This is why I like the idea of using multiple time frames before you make a trade as it can reduce the amount of money you lose by not going against the prevalent long term trade when you are looking at faster time frames.
Smaller timeframes will only be looked into by scalpers, they are not traders because they believe in small and consistent profits and they have their setups ready with risk and rewards calculated so even if they lose, they don't lose much due to setting sl and tp levels. Higher timeframes are seen by those who want to wait till that time for real and they try to determine the trend as well as where it may lead to. Markets are very unpredictable and I have not seen any indicators giving any good signals so higher timeframes help understand the volumes and trends better which can bring more accuracy in trades.
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.
That is simple, if you could analyze the market so well, you can see everything around it. But if you just focus on the timeframe, you can never see a bigger picture on the market where it was a part of the TA. Some people never think about how it becomes useful because they mostly just follow their instinct and what they feel. This is a big problem and this mostly caught us into becoming an emotional traders. 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.
I do not deal with timeframe at all, is that bad? I mean I am a long term investor and rarely trade and even while trading I only trade with things that I see a hype in, so timeframe never really gets into play at all. I know that it is not going to be ideal and I know that many people say that I am doing it wrong but I feel like time frame only gives one side of the picture and what the community is saying factors in a lot more.
I get that it is not really that "cool" to just invest into it because you see a big hype around something but I rarely invest a big sum into trading so I do not care even if I lose all my money with that trade, because I know I spent only a small portion of how much I have. So basically for me timeframe is not something I like to use, I just completely ignore it and move on with my life the way I like to which has provided me a good amount of profit.
As long as whatever you are doing works then there is not really a need to change it even if there are other people who believe that you could benefit by looking at other time frames, at the end of the day it is your money and you are the one that has to decide how to use it in the most effective way possible so you can obtain profits.I get that it is not really that "cool" to just invest into it because you see a big hype around something but I rarely invest a big sum into trading so I do not care even if I lose all my money with that trade, because I know I spent only a small portion of how much I have. So basically for me timeframe is not something I like to use, I just completely ignore it and move on with my life the way I like to which has provided me a good amount of profit.
Personally I do like to watch different time frames to try to see more clearly the overall picture about the price of bitcoin and to give myself a general idea of what are the possible movements that bitcoin could make during the next days and weeks.
Most times it's not just delebrate but I get carried away by some special candle stick formation leaving me too desperate to join the trend not minding what is goings-on on higher time frames.
Hah and after you jump in using just a candle formation dancing in your face to the rhythm of the market drum, you regret after the traders leave the market
The traders are those who have analysed the market, if possible with charts and they expect that candle formation and know why it was that way, they know when to exit but you don't know lol. You still hang on there while most that came to the market have gone with what purchase they have made. On line trading is like the physical stores or market that you visit, make your orders when others are doing so and leave the right time. They chart there way to the store/market, you need to do likewise.
I'm a victim of this so trapped in a single time frame forgetting to see the big picture on higher time frames. Most times it's not just delebrate but I get carried away by some special candle stick formation leaving me too desperate to join the trend not minding what is goings-on on higher time frames.
I'm not a professional trader but I trade under 4h time frame, I find it hard to do a multi time analysis. The reason I choose 4h time frame is that in my experience looking at 4h divergences is much successful in 4h time frame or higher I don't know if this is for everyone but in my experience it works well on 4h time frame that's why I stick with this time frame.
I do not deal with timeframe at all, is that bad? I mean I am a long term investor and rarely trade and even while trading I only trade with things that I see a hype in, so timeframe never really gets into play at all. I know that it is not going to be ideal and I know that many people say that I am doing it wrong but I feel like time frame only gives one side of the picture and what the community is saying factors in a lot more.
I get that it is not really that "cool" to just invest into it because you see a big hype around something but I rarely invest a big sum into trading so I do not care even if I lose all my money with that trade, because I know I spent only a small portion of how much I have. So basically for me timeframe is not something I like to use, I just completely ignore it and move on with my life the way I like to which has provided me a good amount of profit.
I get that it is not really that "cool" to just invest into it because you see a big hype around something but I rarely invest a big sum into trading so I do not care even if I lose all my money with that trade, because I know I spent only a small portion of how much I have. So basically for me timeframe is not something I like to use, I just completely ignore it and move on with my life the way I like to which has provided me a good amount of profit.
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.
Time-frame is different for different traders. If you don't have time and are not a full time trader, you might choose 1 hour or 4 hour time-frame to trade.If you are full time trader, you can choose shorter time frames from 30 minutes, 15 minutes to 5 minutes.
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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.
It is not about extreme view but about strategy. If you only use 15 minutes time frame to trade, you will not realize what's going on generally. You will be stucked in a narrow picture with 15-min candles. You must zoom in and out in order to have a general view about the market. 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.
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.
traders nowadays are not basing the whole frame when it come analysing because they only gaining quick profits despite of the current situation so they prefer to focus to some portion where they can place order for short period, and yes i agree that sometimes its because of being greedy wherein reason as well some of them are frustrated because they take the risk without analysing the big picture.. Who cares? It's their decision.. 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.
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.
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.
Good talk. You just touched on a topic that I feel hasn't been discussed a lot on the forum event though it's an important one. As a swing trader (not there yet, still learning) , I got to learn about the importance of using multiple time frames in order to make my analysis. The first time frame I make use of is the daily timeframe which I use to see the bigger picture or the overall trend to spot swing opportunities. Then I move to the 4hrs timeframe to confirm whatever the chart was telling me in the daily time frame before I finally proceed to the 1hr timeframe to check out possible entry levels and pick them from the lower timeframe. I learnt about this from a famous trader called Rayner Teo.
The middle one, 4H, is used for your strategy (TP, SL, and entry point)
The 1H is used to “press” enter your position in
This is my way as i’m using Ichimoku to trade and it works pretty well
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.
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.
Good talk. You just touched on a topic that I feel hasn't been discussed a lot on the forum event though it's an important one. As a swing trader (not there yet, still learning) , I got to learn about the importance of using multiple time frames in order to make my analysis. The first time frame I make use of is the daily timeframe which I use to see the bigger picture or the overall trend to spot swing opportunities. Then I move to the 4hrs timeframe to confirm whatever the chart was telling me in the daily time frame before I finally proceed to the 1hr timeframe to check out possible entry levels and pick them from the lower timeframe. I learnt about this from a famous trader called Rayner Teo.
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.
1=Nothing wrong because they have over-worked the strategy over time. Although can be change if not working
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. 2 =Scalpers
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. 3= Makes you over confident. Not the best way to trade That's trend.
1=Nothing wrong because they have over-worked the strategy over time. Although can be change if not working
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. 2 =Scalpers
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. 3= Makes you over confident. Not the best way to trade That's trend.
I will try and make an interpretation of those 3 paragraphs in my own understanding, you might like it too.
1.
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=Nothing wrong because they have over-worked the strategy over time. Although can be change if not working .
.IMO I don't think there is anything wrong with a trader building workable confidence in his trading pattern. This will definitely make the trader to understudy his/her strategy. "They say an old wine is the sweetest"
2.
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.=Scalpers
Is really not the business of this kind of traders with what happens or what is happening in the business. What matters is the profit and no matter how they achieve it, so be it. But in real terms, is there anything wrong with that (Scalping) ? If you can make your profit as a daily trader by scalping, don't hesitate, if the strategy confirms it then be submissive for once and too it.3.
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= Makes you over confident. Not the best way to trade That's trend.
Yeah, locating the trend is like unlocking the important spot in your life (For want of words (
) But sometimes the price may be reversing after you got to the point and relaxed that it won't rebounce because you trading on the trend line.
With my trading strategy, I obviously look at the bigger picture before going into smaller time frames. This makes decision-making easier, especially in a trending market. Things become a little complicated in a reversal or a sideways market, where the bigger time frames gives you a completely different picture from a shorter time frame,
I know people who are just comfortable trading derivatives on shorter time frames, and they make profits doing short trades. So I think strategy matter too.
I know people who are just comfortable trading derivatives on shorter time frames, and they make profits doing short trades. So I think strategy matter too.
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.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.
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.
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.
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.
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.
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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.
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.
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.
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.
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.
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.
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.
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.
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.
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