: Trends exist in layers; a large trend on a daily chart contains many smaller trends on hourly or 5-minute charts. Top-Down Approach
Technical Analysis Using Multiple Timeframes: A Strategic Guide technical analysis using multiple timeframes pdf download
There is no single "correct" set of timeframes; the choice depends on your trading style. However, a factor of is generally recommended between intervals. : Trends exist in layers; a large trend
A support level on a 15-minute chart is minor. However, if that same level coincides with a major support zone on the Weekly or Daily chart, it becomes a high-confluence area with a much higher probability of a bounce. 3. Momentum Divergence A support level on a 15-minute chart is minor
Zoom in to find the key levels.
Imagine the shows a strong uptrend (higher highs). The 1-hour chart pulls back to a key moving average. Instead of buying immediately, you drop to the 15-minute chart . You wait for that chart to show a reversal pattern (like a bull flag or an RSI divergence). You enter there. Your stop loss is tight (on the lower timeframe), but your profit target is large (based on the higher timeframe).