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    Time Frames: by @cryptocred

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    Nnogge Lovis
    This document discusses the importance of multi-time frame analysis in trading. It recommends determining the dominant trend from higher time frames like monthly, weekly or daily charts before analyzing lower time frames. Key points covered include managing expectations based on the time frame of a level, using time frame precedence to determine counter-trend opportunities, refining levels by starting from higher time frames and moving to lower ones, and selecting entry triggers and trade management based on the time frame of the original setup. The conclusion emphasizes that context is important and traders should build a multi-time frame picture of the market before entering positions.

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    Time Frames: by @cryptocred

    Uploaded by

    Nnogge Lovis
    188 views13 pages
    This document discusses the importance of multi-time frame analysis in trading. It recommends determining the dominant trend from higher time frames like monthly, weekly or daily charts before analyzing lower time frames. Key points covered include managing expectations based on the time frame of a level, using time frame precedence to determine counter-trend opportunities, refining levels by starting from higher time frames and moving to lower ones, and selecting entry triggers and trade management based on the time frame of the original setup. The conclusion emphasizes that context is important and traders should build a multi-time frame picture of the market before entering positions.

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    Crypto 6

    Original Title

    6.Time Frames

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    This document discusses the importance of multi-time frame analysis in trading. It recommends determining the dominant trend from higher time frames like monthly, weekly or daily charts before analyzing lower time frames. Key points covered include managing expectations based on the time frame of a level, using time frame precedence to determine counter-trend opportunities, refining levels by starting from higher time frames and moving to lower ones, and selecting entry triggers and trade management based on the time frame of the original setup. The conclusion emphasizes that context is important and traders should build a multi-time frame picture of the market before entering positions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    188 views13 pages

    Time Frames: by @cryptocred

    Uploaded by

    Nnogge Lovis
    This document discusses the importance of multi-time frame analysis in trading. It recommends determining the dominant trend from higher time frames like monthly, weekly or daily charts before analyzing lower time frames. Key points covered include managing expectations based on the time frame of a level, using time frame precedence to determine counter-trend opportunities, refining levels by starting from higher time frames and moving to lower ones, and selecting entry triggers and trade management based on the time frame of the original setup. The conclusion emphasizes that context is important and traders should build a multi-time frame picture of the market before entering positions.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 13

    Time Frames

    By @CryptoCred
    Outline

    Disclaimer

    General Remarks

    Managing Expectations

    Time Frame Selection

    Trend Precedence/Market Structure

    Refining & Contextualising Levels

    Entry Triggers

    Trade Management

    Conclusion
    Disclaimer

    Neither this presentation, nor anything on my Twitter, Telegram, or any other medium/mode of
    communication, including private correspondence, constitute financial advice.

    I am not a financial advisor and hold no formal qualifications in this area.

    Trade entirely at your own risk.

    This is for entertainment purposes only.


    General Remarks

    ● Multi-time frame analysis is essential when building a coherent and actionable view of a
    market
    ○ Regardless of time frame
    ● Plethora of trading maxims impliedly rely on time frame analysis without offering much
    guidance
    ● Important skill for traders of all styles and time frame preferences
    ● Positively affects all the different stages of a trade
    ● Recommended reading: article on directional bias (link in description)
    Managing Expectations

    ● Trying to answer the question: what can be reasonably expected from price at a level on
    a given time frame?
    ● Basic principles
    ○ High time frame (“HTF”) trends are longer and harder to reverse
    ○ Bigger moves more likely to originate from HTF levels (or intraday levels formed at/within HTF
    levels)
    ○ Price can take more time to resolve at HTF levels
    ● Examples:
    ○ Price breaking market structure/making a higher high on H1 in a weekly downtrend
    ○ Price reaching weekly support vs price reaching M15 support
    ○ Price consolidating at H1 support for 12H vs price consolidating at W1 support for 12H
    Time Frame Selection

    ● Commonly stated that a trader should select a couple of time frames based on their
    trading style e.g. M5 and M15 for scalping, D1 and W1 for swing trading, and so on
    ○ Broadly reasonable but not a reason to ignore other time frames
    ● Even for LTF traders, mapping HTF levels is useful
    ○ Being aware where price is coming from, where HTF FTA is that may not be visible on LTF, etc.
    ● Don’t need to ‘choose’ per se
    ○ Ascertaining trend/deriving directional bias
    ○ Delineating levels
    ○ Engaging the market/entry triggers
    ○ Managing the trade
    ○ The above do not have to be uniform when with regard to time frames
    ● Further explanation to follow
    Trend Precedence/Market Structure

    ● Traders are encouraged to ascertain what ‘the trend’ is and to trade with it
    ○ Not hugely helpful as there is often more than one trend at play on a given instrument,
    depending on the time frame
    ○ E.g. strong up day in the context of a larger downtrend may have offered a LTF uptrend
    ● Better question: what is the dominant trend and what intraday conditions would allow
    for positioning in tandem with the trend?
    ● General principles:
    ○ Dominant trend is most reliably derived from HTF charts (Monthly/Weekly/Daily)
    ○ If a dominant trend is present on HTF then persuasive signs of reversal must also form on HTF
    ■ I.e. not buying every green H1 candle in a weekly downtrend
    ○ HTF trends last longer than LTF trends (self-evident but easily forgotten)
    ○ LTF moves against dominant trend are counter-trend trading (fading) opportunities until proven
    otherwise
    ■ HTF bearish = broken support likely to turn resistance* + selling rallies
    ■ HTF bullish = broken resistance likely to turn support* + buying dips
    Refining & Contextualising Levels I

    ● Common stumbling point: drawing every single level on a chart from a multitude of time
    frames
    ○ Level-to-level trading becomes impossible
    ● Refining:
    ○ Delineate HTF level (silly as it may sound, use a thick line and different colour)
    ■ Simplest way: lowest candle close preceding rally (support)/highest candle close
    preceding a decline (resistance)
    ○ Find LTF levels in reasonable proximity to the zone
    ○ Can elect to keep the refined LTF level, keep only HTF level, make a zone/box, and so on →
    guide/filter
    ● Less room for error if your analytical process starts from HTF and gradually moves to LTF
    if/when required
    ○ Personally: if no daily time frame logic present in the setup, either in terms of bias or structure,
    I’m not involved
    Refining & Contextualising Levels II

    ● Much like fading a dominant trend, it would also be unwise to fade a move from/coming
    off HTF structure with nearby LTF structure
    ○ When HTF levels do their job, the moves that follow are significant and visible on HTF charts i.e.
    they are big (pip value, % increase, and so on)
    ○ Therefore, if a HTF structure is going to do its job then a nearby LTF structure is unlikely to
    hold/reverse price
    ○ Example: price reaches and reacts to W1 and D1 support, Fading Freddy steps in to smack it
    down with an M15 resistance level 5 ticks away → arse = done
    ● How does context help?
    ○ Set better targets → If this HTF level does its job, where’s the next HTF level?
    ○ Avoid low probability fades → Should I be stepping in front of W1 support with M15 resistance?
    ○ Further refines level selection → Is this level likely to do anything given the nearby structures?
    ● Personally
    ○ Determine FTA from time frame of the setup and entry structure unless D1 bias (in which case
    FTA ascertained on D1 time frame as well)
    Entry Triggers

    ● Recommended viewing: video on Entry Triggers (link in description)


    ● Very subjective/personal: market at candle closes, blind limits, market following reaction
    at level, one hit versus scaling in, etc.
    ● My opinion/what works well for me
    ○ HTF levels require more patience or, alternatively, can be given more time
    ■ Thought experiment
    ○ No need to be entirely uniform in time frame selection, especially with regard to entries
    ■ Especially with ‘price action entries’ i.e. waiting for LTF evidence of strength/weakness at
    HTF levels
    ○ LTF closes at HTF levels are not particularly reliable; you could end up selling the bottom/buying
    the top
    ■ LTF assessment of HTF levels will generate false signals
    ■ Also assumes that price must turn precisely at the level, otherwise it’s broken → wrong
    Trade Management

    ● Most subjective and anecdotal section


    ● Real answers will come from your trading journal → managing a trade (and how) versus
    leaving original parameters as they were
    ● My opinion/what works well for me:
    ○ Beginners have a tendency to be impatient at levels (especially HTF) and to look for excuses to
    manage a trade
    ■ Either to be involved in the markets in some form or to make for a ‘free trade’ and ‘let it
    run’
    ○ Invalidation will most persuasively occur on the time frame that the trade is derived from
    ■ E.g. buying a D1 level and seeing one H1 close below it is not a persuasive invalidation
    ○ Being hands-off, especially in the early portions of a HTF-premised trade, is a skill in itself
    ○ Managing a trade on the same time frame that it is derived from (or as close as possible)
    ■ E.g. H1 setup and structure = 30M/H1 management, perhaps not M5 management
    ● Assess levels on their own terms and time frames where possible
    Conclusion

    ● Context is king
    ○ Context > structure
    ○ The same level can be a terrible fade or an A+ fade depending on the wider circumstances
    ● Building a multi-time frame picture of the market > drawing levels and punting
    ○ This allows you to form biases and expectations based on your reads, as opposed to ‘we’ll see
    when it gets there’ complacency
    ● Quick checklist:
    ○ What is the dominant trend (if any)?
    ○ Have I mapped my HTF (and LTF) levels?
    ○ Am I aware what type of level/structure price is coming from?
    ○ Given the above, is my fade or continuation entry reasonable?
    ○ If yes, what are my entry criteria/parameters for engagement?
    ○ How do I now manage the position?
    ● Endless room for further study
    ● TechnicalRoundup.com

    ● Weekly digital newsletter

    ● Detailed, multi-time frame technical analysis of Bitcoin and Altcoin major pairs

    ● $30/month (excl. VAT)

    ● Full preview available on the website

    ● Receive the most recent issue immediately upon subscribing

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