Technical analysis & multiple timeframes

Technical Analysis using Multiple Timeframes.

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. Zoom out

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 chartsI 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.

Trader Cobb

The Trader Cobb Become A TraderFree 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

Crypto Dave


! 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.

8 thoughts on “Technical Analysis using Multiple Timeframes.”

  1. Interesting article. I noticed you are only talking trends, and support and resistance. I think it was one of Ganns strategies to check the longer term trend before placing a trade, and if you are trading against the main trend have a following stop loss  based on support or resistance track your trades movement.

    Obviously this would minimize any losses, but could also lock in profits if you were stopped out. 

    I am wondering if the volatile nature of Cyrpto’s would make it hard to use a stop loss? 

    It seems people I know, once they place a trade watch it like a hawk to get out if it quickly if the market moves against them.  

    1. Hi Michael. Some good questions there. I will start by saying EVERY trade I place has a Stop Loss and a Take Profit. I will never place a trade without a stop loss. The way I trade, you don’t have to watch and manage your trade.

      An entry, take profit and stop loss are determined before entering the trade then you just set and forget.

      There are three trading strategies that I use 2 for trends and one when consolidation is happening. You can trade against the trend, especially on the lower timeframes, if there is a clear run to your target, but I like to trade with the trend as this tends to have a higher probability of success.

      Why don’t you get on the free course and have a look, it is a great course.

      Crypto Dave

  2. Hey there Crypto Dave,

    I can tell just by the way you articulate through the language of the trade you have plenty of experience. A lot of this is over my head. I am interested in cryptocurrency/ bitcoin. I think I might have to check out the free course and see if I might be able to start something here. 

    I am going to go to Trader Cobb and see if I can become a trader!

    Thanks for this great opportunity!

    Chad

    1. Hi Chad, The free course is a great place to start. It is not near as complicated as it sounds. Yes, I have a fair amount of experience but what I have found is the more simple you can keep it, the better it tends to work.

      The approach Trader Cobb uses is straightforward to learn and the strategies work well. Good luck with it, and if you need any help, shoot me a message, and I will help where I can.

      Crypto Dave.

  3. Hi, I don’t trade crypto but I think the principle that you present here, the necessity to look at multiple timeframes when trading is probably true of all markets. I trade stocks and stock options and I find that there are certain things like when an intermediate-term base in building that are just easier to see on weekly charts. I think it goes further than just finding levels of support and resistance, particularly in the area of stocks where around 90% of trading volume is due to institutions. Since they often spread their accumulation of positions over weeks or months, you really need the longer timeframes to see that, even when you are looking at daily charts and shorter timeframes for trades. Great article. Best regards, Andy

    1. Hey, Andy, thanks for reading, and yes, you are right multiple time frames is important in all trading for gaining some perspective.

      If you are currently trading stocks and options, I think you would love the crypto market. Why don’t you have a look at the free course? I use to trade stocks and options but do not even consider them anymore after finding crypto.

      Crypto Dave

  4. Hello Trader Dave,
    I just reviewed your blog and found it very interesting. I always dreams of the prospect of becoming an online trader but never felt that I could compete financially. I have to admit when you open up your post talking about Technical Analysis
    using Multiple Timeframes you lost me completely. When you talk about stacking the probabilities in your favor I came back to life. You mention multiple timeframes gives you the ability to increase the probabilities to make a trade. After a few subheadings you produce a chart to help readers who are probable still some what lost and confused about the content.
    You speak about a trigger chart on which you base your strategy on and The higher time frames T1 T2 T3 which are used for confirmation. Your images are great but I feel that you need to find a way to simplify your post and work more with certain keywords. You want to attract more visitors to your site if they get confused the will leave your site. I still am impressed with your subject and I look forward to your next blog!

    1. Hi Albert,

      Thanks for your feedback, and I would have to say I agree with you. Technical analysis can get a little heavy, but that is why I suggest the Free Become a Trader course because it covers in video format, which is a bit easier to understand. You can also go back and watch it over and over until you understand it.

      Although it all sounds complicated, it really isn’t. They are straightforward strategies to learn and apply, and they do work very well. Jump on the free course; it will all make a lot more sense.

      Crypto Dave

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