The Big Picture Matters

We've just published a new T2W article called "The Big Picture Matters" by Fernando Gonzalez.

Quick Summary: If you're only trading intraday, short-term time frames, why should you bother with what's happening on the daily or weekly charts.

Here we look at the implications longer term time frames can have on short-term movements.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.

What you are talking about is an old technique in Techncial analysis and comes under the Multi time frame analysis. Older time frames always do influnce the lower time frames .

How ever the tricky part of this subject such as

1) what is the dominate time frame
2) what is the smallest time frame .
3) how many time frames one has to choose
4) what time frame one has to choose for risk managment.

Was not mentioned...


very very elementry two pages of contribution .

Ps:-- it would be great if yo explained the dynamic linking of dominate time frames using cycle analysis.. That is the key to using the higher time frames correctly .. This way you can see the moves before happening .....


grey1

The trend is your friend is harder to follow than what i thought. Lisbet

As mentioned above a very elementry article with not much depth of explanation.

I use different timeframes depending on whether I am day trading (1hr/15min/5min) and looking into the screen all day and longer timeframes if I take a longer position (1hr/4hr/daily). Short time positions are heavily affected by the news, longer term less so but you still have to know what's going on around the world.

The need to constantly review your position and more importantly.... yourself, when trading make you successful. Adapt to the markets or they will eat you alive. You don't know best and which way it's going, just go with what you see. Stick to the rules you set at the start and move between timeframes to show support/ resistance levels for entry/ exit points.

How many of us get into a position and think it will change direction there or here and it doesn't.... ? The trend really is your friend until it's end. Staying out until things become clear is the most difficult discipline, as well as being too greedy and staying in too long and losing all the profit.

There's a great post on here for your trading plan... review this weekly, monthly, yearly to see if you are achieving your goals. If you're not then why not ? Are you actually following what you set out to do or are you trying to adapt to what happening in front of you unsuccessfully ? Move between the timeframes on the charts often to get the bigger picture.

timsk's trading plan;
http://www.trade2win.com/boards/show...t=12585&page=5

A little off-subject there but it all ties in with timeframes... I think

Hope this is helpful