Multiple Time Frames - How to React Quicker & Confirmations
If you are trading the 1 Hour chart, you can use the 3 minute chart, for instance, to your advantage.
You can either SHORT the Blue Line on the 1 hour chart, or if you are feeling unsure, you can wait for a breakdown in the lower time frames to confirm and enter.
Let's say you are SHORTING ETH, but missed the Blue Line Short.
On the 3 minute chart, price didn't reach the Blue Line. HOWEVER, if you are watching Bitcoin, which you should pretty much all of the time, you'll see a rejection on the 3 minute and a red candle pointing downwards on BTC.
Because BITCOIN affects the market so much, it's safe to say ETH was never going to reach the Blue Line, especially since ETH/BTC was weak at the time. So shorting at this level on either ETH or BTC would have been safe and would have resulted in good profits.
Of course, all of this is much more stress! BUT if you want to spend more time trading and increase your win percentage, watching the LOWER time frames is important.
Otherwise, feel free to take trades at the Blue Line and set a stop/loss accordingly. Your win rate will still be high, just not as high.
You can either SHORT the Blue Line on the 1 hour chart, or if you are feeling unsure, you can wait for a breakdown in the lower time frames to confirm and enter.
Let's say you are SHORTING ETH, but missed the Blue Line Short.
On the 3 minute chart, price didn't reach the Blue Line. HOWEVER, if you are watching Bitcoin, which you should pretty much all of the time, you'll see a rejection on the 3 minute and a red candle pointing downwards on BTC.
Because BITCOIN affects the market so much, it's safe to say ETH was never going to reach the Blue Line, especially since ETH/BTC was weak at the time. So shorting at this level on either ETH or BTC would have been safe and would have resulted in good profits.
Of course, all of this is much more stress! BUT if you want to spend more time trading and increase your win percentage, watching the LOWER time frames is important.
Otherwise, feel free to take trades at the Blue Line and set a stop/loss accordingly. Your win rate will still be high, just not as high.
