WHY – Technical Analysis using Multiple Timeframes? – because it is stacking the probabilities in your favour. I have talked about price action and trend, moving averages and MACD, but now we will look at multiple time frames. I can show you how I use them to increase the probabilities of my trades.
The strategies that I use work on any timeframe. You can trade minute, hourly, daily or even weekly. The beauty of a strategy that works over multiple timeframes is that you can choose how active you want to be in the market. Crypto is 24/7, so you can trade whenever you like and as much as you like with multiple timeframes.
Multiple timeframes also give me the ability to increase the probabilities of a trade. Trading is just a game of probabilities. You need a slight edge in the market, and technical analysis using multiple timeframes helps me get that edge. Let’s have a look, and I will show you how.
Trigger Charts & Higher Timeframes
Trigger Chart – is the chart you find the trade on. ALL conditions of my strategy will be met on this chart, and the signal will confirm on this chart. However, we need to look to the higher timeframes to make sure they are in agreeance. At least 1 of the higher charts is used to confirm the signal. This will increase the probability of the trade going the way you want. If ALL charts are in agreeance, the probabilities are greater.
The Higher Timeframes T1, T2, T3 – These charts are used for confirmation. If my trigger chart confirms a buy signal, then the next higher timeframe must be in agreeance. The trend has to be in the same direction, and moving averages must also be in agreeance. This is one of the conditions on my checklist. If the next higher time frame does not agree with my trigger chart, I don’t have a valid signal.
ZOOM OUT for perspective.
It also pays to zoom out, so to speak. I always look at the daily first no matter what time frame I am trading. In fact, the daily chart is always at the bottom of my charts. I use the “Perspective” chart for a couple of things.
- To see if any support or resistance is in the way, anything that will stop my targets from being reached.
- To increase the probabilities a little more, I like to only trade in the daily trend direction.
I didn’t put the daily in the list, but if there is a signal on the daily, you go to the 2-day for the next higher time frame and go to the weekly for perspective. The more charts you have in agreeance, the better, but it is not necessary for them all to agree to make a trade.
Perspective is Good
When you start trading, there can be a lot to learn, and having a good perspective of the market will stop the FOMO. Zooming out to see the big picture helps and can also provide levels of support and resistance that can either increase your probabilities or keep you out of a trade.
An example of when it would keep me out of a trade would be if a buy signal confirmed on a lower time frame, I zoomed out, and there was a strong level of resistance before I could reach my profit target. This would keep me out of the trade. However, if I did not zoom out, I might not have seen that level on a lower time frame chart.
When starting to trade, it is a lot easier learning to trade the higher time frames because it gives you more time—this way, you are not under any pressure to get the trade on. If you are under any pressure, you are more likely to make a mistake and mistakes in trading can cost a lot of money.
I suggest only trading the lower time frame charts when you are familiar with your strategy, the charts and how your trading platform works. It can take a little bit of time to check everything before you place a trade, and it does take a little time to place an order in the market, so you need to be familiar with it all when trading lower time frames.
Setting up your Charts.
I use Trading View for my charts. They are great free charts; however, to look at more than 1 chart at a time, you need to upgrade from the free version. You will also be limited to the timeframes you can select with the free version.
I always start my market scans with my charts like this with the daily down the bottom. This way, I can quickly change through the time frames on the top chart but keep the daily visible for some perspective. If I see something that interests me, I can expand that chart to fill the screen.
You don’t have to have your charts set up this way. It is a personal preference; I like to do my initial scan that way. You can have your screen split vertically if you want or even use 2 monitors. I run a few monitors to have my exchange open on one and my charts on the other.
I also have my charts linked even though they are different time frames. This way, I can draw support & resistance on the daily, and it will show on my lower time frames as well.
To find out more, have a look at my post ===> Cryptocurrency Trading Charts.
The Trader Cobb “Become A Trader” Free Course is the best way to learn Technical Analysis using Multiple Timeframes. There is a whole section in the course covering multiple time frames. It covers everything I have talked about and much more. It covers setting up your charts, using indicators, trend, price action, and even setting up your accounts for trading.
Trader Cobb is the complete package; they don’t just sell a strategy. You will also learn risk management, trading psychology, and everything you need to be a successful trader. They have an awesome community and an excellent support team. The best part is you can access ALL the training videos for free. If you like it, you can then go on and purchase the strategies and “Become a Master” crypto trader.
To read a full review on Trader cobb here ===> Trader Cobb Review – Is it worth your coin?
My Final Thoughts.
I have been trading the markets for over 15 years, and I have traded options, futures, stocks, FX and now crypto. I have learnt a lot of strategies and technical analysis over the years. One thing that I have learnt over the years is that the more simple you can keep a strategy, the better they seem to work.
When you start technical analysis, you get all excited and want to learn ALL the indicators you think the more you learn and the more you can apply, the better you will trade. In fact, it is the opposite. The more indicators you use, the more reasons you have to keep you out of a trade.
Trading crypto & Technical Analysis using Multiple Timeframes does not have to be complex or hard. You can get started and see yourself with the Free Trader Cobb – Become a Trader Crypto Course. You have nothing to lose, and you can try before you buy and see how simple trading crypto really can be. It might just be your ticket to Wealth with Crypto.
Be the Best you Be
! DISCLAIMER: I am not a financial advisor. This is not financial advice. The content and material I provide on 2dsirecrypto.com is my opinion only and general in nature. Always do your own research before investing any money. You should always understand the risks involved in trading and investing and seek advice from licensed professionals before undertaking any investments of your own.