Multiple Timeframe Analysis

This is a discussion on Multiple Timeframe Analysis within the Discretionary Trading forums, part of the Methods category; I understand your reasons for all the timeframes. And I appreciate any strategy that will make someone better in this ...

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Old Mar 10, 2009, 8:32am   #33
Joined Mar 2009
I understand your reasons for all the timeframes. And I appreciate any strategy that will make someone better in this rough business we're in. I personally don't feel the need for all of those timeframes, but I know it'll help new traders understand the framework of the market.
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Old Mar 20, 2009, 1:54am   #34
Joined May 2008
Hi,

I've been looking for some information on a particular multiple timeframe technique. I don't know if anybody has ever tried it, but I just want to make sure there isn't any major problem using it. The setup is three timeframes like daily, 4 hr and 30 min (other combos like 15 min, 1hr, 4hr can also be used). You can use any indicator like stochastic or even a simple moving average like in the 3 ducks system. Personally, I am practicing with PSAR (0.1, 0.11) wich is more sensitive than the standard 0.02, 0.2 settings.

So you look at the daily chart to see where the major trend is heading. There we can use MACD as in the Elder's triple screen system to find the trend. Next, we look at the 4 hr wich is our trading chart and wait for a PSAR dot to show in the direction of the major trend. Our entry points will be after checking the 30 min chart at each retracement (see arrows in the pic). Once trading orders launched, let roll till the 4hr chart shows a reverse PSAR.

Stop loss would be at the PSAR dot on the 4hr chart and a profit level can also be fixed (same amount as risk). Also, I avoid ranging markets on any timeframes by looking at Bollinger and Kertnel bands.

The first time I read about that technique I thought it was some kind of Holy Grail, but I don't know why people don't seem to be talking about it anymore. I want to make sure I didn't miss anything on that technique. All comment welcome.

Please excuse my french...

Chamane
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Old Mar 22, 2009, 2:43am   #35
 
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Joined Dec 2008
Multi-time Frames Scalping..

Quote:
Originally Posted by GilYoungJo View Post
I personally trade 60min, 30min, 15min, 10min, 5min and 3min.

I teach my traders to trade only 2 timeframes in the beginning though (of course, after having mastered 1 timeframe analysis technique - either 3min or 5min - depends on their background and personality).

Most traders don't understand why price action dwindles after hitting support on the 5min......they faily to realize that the 15min is showing resistance - thus the 5min support is very short lived. This may be invalidated if the 30min timeframe is indicating the possibility of a possible support level however.

It's not as easy as it sounds - as with everything trading-related of course.....

Where are your moving averages on each timeframe in relation to the stochastic....in relation to the MACD.....in relation to the ROC......?

Multiple tiemframe analysis is the only way to determine whether all the traders are in "sync"

Playing Pool:

1min = pure momentum daytraders
3min = breakout/momentum/support-resistance traders
5min = pretty much on par with 3min traders plus their profits are usually a tad larger due to the extra 2 minutes of built-in momentum/reliability in the timeframe [usually the favorite timeframe of successful daytraders and regular traders alike]
10min = same as 5min plus short-term intraday hedge funds
15min = same as 5min plus slightly higher-profit-oriented hedge funds and mutual funds/institutions
30/60min = same as 15min plus swing traders


Bottom line: the longer your timeframe, the more reliable signals are - due to the built-in momentum ----- it is very easy to break 1min support/resistance levels violently BUT is it not as easy to break 5/15min support/resistance levels

My training method core concept: using the example of a dual timeframe analysis method - confirm that your 5min is in a clear trend then wait for your 1min corresponding support/resistance to initiate a position ---- the shorter your main small timeframe, the faster you have to take profits --- the bigger timeframe analysis allows for more of "letting your profits run" but the flipside is that you have to be willing to add to your position and take on slightly higher levels of risk due to the "lag effect" and "shake-out effect"

I will be posting some videos on this method within the next few weeks.


Good Trading!
I agree with you ideas. I'm very mush interested in seeing your video's
Maddman
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Old Jun 5, 2009, 10:01pm   #36
 
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Joined Dec 2008
I was once told...

Quote:
Originally Posted by bnaimy View Post
A very good post and tottaly agree with you on all points.
Using 1 timefram will never get you anywhere, i am personly using around 5 charts to pinpoint where marked is going, and when all the charts are in synch with eachother thats when you get the good and reliable moves, cause each group that looks at each timeframe are buying or shorting, its a selffullfilling prophecy.

I use 10min+3min+2min+89tick and 144tick charts and with that i am in full controll over my own actions and what to expect from the marked. The marked is very easy to predict if you have the right tools at your dispossel.

Another thing, using only slow stochastics and nothing else will also cause to many bad signals, 2 oschillators usulay gets the work down, i am a big fan of macd and slow stochastocs and moving averages.In combination they are priceless

Keep up the good work and i will be looking forward to looking at those video you are talking about, i am sure many here is appritiate it.

With kind regards
Bashir Naimy
I was once told that all intelligent people have a dictionary closeby and handy at all times.

My suggestion to you is... go buy yourself a dictionary.

The words are spelled:
M-A-R-K-E-T ...not marked
D-I-S-P-O-S-A-L... not dospossel
U-S-U-A-L-L-Y... not usulay
and
A-P-P-R-E-C-I-A-T-E... not appritiate
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Old Jun 5, 2009, 10:27pm   #37
Joined Aug 2003
Quote:
Originally Posted by mikziv View Post
I was once told that all intelligent people have a dictionary closeby and handy at all times.
Did the person who told you that have a dictionary closeby and handy when they told you this?
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Old Jun 5, 2009, 10:54pm   #38
Joined Jul 2003
Mikviz, I’ve got a real thing about grammar, spelling, punctuation, syntax and semantics. But that’s just my thing and I realise that.

There’s a big difference between those who spell badly bad talk just great and those who spell badly and just talk crape. Bnaimy is worth reading even with the extra effort required. You have yet to attain such credibility.

And btw - It’s ‘close by’ not ‘closeby’.
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Thanks! The following members like this post: candles , nine
Old Jun 5, 2009, 11:40pm   #39
 
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Joined Dec 2004
Quote:
Originally Posted by GilYoungJo View Post
I personally trade 60min, 30min, 15min, 10min, 5min and 3min.

I teach my traders to trade only 2 timeframes in the beginning though (of course, after having mastered 1 timeframe analysis technique - either 3min or 5min - depends on their background and personality).

Most traders don't understand why price action dwindles after hitting support on the 5min......they faily to realize that the 15min is showing resistance - thus the 5min support is very short lived. This may be invalidated if the 30min timeframe is indicating the possibility of a possible support level however.

It's not as easy as it sounds - as with everything trading-related of course.....

Where are your moving averages on each timeframe in relation to the stochastic....in relation to the MACD.....in relation to the ROC......?

Multiple tiemframe analysis is the only way to determine whether all the traders are in "sync"

Playing Pool:

1min = pure momentum daytraders
3min = breakout/momentum/support-resistance traders
5min = pretty much on par with 3min traders plus their profits are usually a tad larger due to the extra 2 minutes of built-in momentum/reliability in the timeframe [usually the favorite timeframe of successful daytraders and regular traders alike]
10min = same as 5min plus short-term intraday hedge funds
15min = same as 5min plus slightly higher-profit-oriented hedge funds and mutual funds/institutions
30/60min = same as 15min plus swing traders


Bottom line: the longer your timeframe, the more reliable signals are - due to the built-in momentum ----- it is very easy to break 1min support/resistance levels violently BUT is it not as easy to break 5/15min support/resistance levels

My training method core concept: using the example of a dual timeframe analysis method - confirm that your 5min is in a clear trend then wait for your 1min corresponding support/resistance to initiate a position ---- the shorter your main small timeframe, the faster you have to take profits --- the bigger timeframe analysis allows for more of "letting your profits run" but the flipside is that you have to be willing to add to your position and take on slightly higher levels of risk due to the "lag effect" and "shake-out effect"

I will be posting some videos on this method within the next few weeks.


Good Trading!
So the longer your time frame the more reliable the signals. Rubbish...If it was the case why work down to the lowest common denominator of the unreliable timeframe/even more so the indicator derived from that timeframe!!!!. Seems to be a self defeating system as usual!
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Old Jun 6, 2009, 8:47am   #40
Joined Nov 2001
I thought that I was reading

Multiple Timeframe Analysis.

Such an impressive title, considering the content. I think that I prefer Schwager.
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