Many have asked me about demonstrating how to analyze the chart from complete scratch. When looking at my chart and educational video, it all seems very simple, but many are telling me they are struggling to identify the market.
Today I will go over how I analyze the chart, from the Higher time frame down to lower time frame by using multi-time frame analysis, top down approach. Specifically by identifying price action, impulse and correction phases of the market.
1. Start from the Higher Time Frame (HTF): HTF can be any time frame higher than the daily chart, such as monthly, weekly, daily. Personally I like to use daily as a go to time frame as it is widely used by traders.
2. Identify the impulse phase of the market. Understand the impulse phase is a period of fast momentum, price is either pushing up or down very aggressively, and not much consolidation visible on the HTF.
3. Identify a period of consolidations. Using trendlines, connect the swing highs and lows of the price. This is to identify the correction/consolidation phase of the market. Which is the most important aspect in price action analysis. You will need to be very knowledgeable on the type of continuation, reversal correction patterns/structures the market usually will form. (I will share many price action patterns/structures that I identify and use in the market below)
4. Once you identify the HTF phase of the market, you will then go down to the Lower time frames (LTF). LTF can be anything under 2/1 HR, 30/15 Min charts. It's not a specific time frame, rather “Multi time frame analysis”. You will also identify the impulse phases & Correction phases on the LTF and use trendlines to connect the swing highs and lows of the correction/consolidation phase, just like what we did on the HTF.
5. Now that you have both the HTF and LTF charts drawn out, the key here is to have both the HTF and LTF tell you the same direction/bias. They should align up and have the same bullish/bearish bias. This will strengthen your probability of success. I always make sure when I am about to enter any trades, I want the multi-time frames all telling me the same story. Same bias, same direction.
6. Now all that comes down to is forecasting the possible entries, which I have made many videos on this topic and I will share some below. Understand you would always want to make sure you are either entering during the impulse phase on the LTF, or the price is about to start the impulse phase to gain the upper hands in the market. You do not want to enter when the price is in a consolidation which is why many traders end up losing money, stuck in the correction and price isn't moving too much, rather just sideways.
7. Continue to work on analyzing the chart from scratch, get comfortable at identifying the impulse phase in the market, and do backtesting continuously so you identify the corrections in the market. This will make you see the chart and the market completely different than before, and you will have a much better probability of entering trades that work out in your favour.
Any questions, comments or feedback welcome to let me know.
Jojo
Below I will share many educational videos that will help you to understand more on price action analysis, impulse/correction phase, entry, forecasting, backtesting and more.
Continuation and Reversal Correction
Identify a correction for the next impulse move in price action analysis
I haven't watched this but don't expect to learn anything new. I expect to pause and rewind multiple times though. Why? I've been watching Jojo's videos for almost a year now and he has basically shared most if not all that he knows that is important. His back catalog is full of gem after gem of advice. I often rewatch them as refreshers. Jojo has been consistent from the start. He has a winning style and one that seems relatively easy to replicate. In practice, it takes a lot of hard work before all of this becomes second nature. Also, not everyone has Jojo's laid back attitude to life. Personally, I like to scalp and the thrill from the immediate feedback at the LTFs. That said, all of Jojo's principles are transferrable. I know that if I just had the discipline to follow what Jojo says, life would be simpler, less stressful and way way more profitable. Truth is, I don't have that discipline but I love my Trading. We all have our own journeys, but I can honestly say that I have never heard Jojo say anything that I vehemently disagree with. His latest video had questions around haters. Thankfully we don't seem to have them here on TradingView. I know that this community really respects Jojo. If you're new to Jojo, you'll see what I mean. Thanks Jojo, for the guidance that transformed me into a winning trader.
jojofang0901
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@Seandeleer, Thank you Sean. Very kind words and honest feedback from you. Keep it up and continue moving forward, thx
Seandeleer
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I've since watched it and as always effortless. I can see why the haters would be jealous. Love your work and philosophies on life @jojofang0901.
suede
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Awesome Thank you !
TheSignalyst
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I love this kind of videos :D I make one every week on my youtube channel. keep up the amazing work jojo!
Shaban01
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Thanks Jojo for Sharing. Pls tell us how you highlight after the trendline. I try to highlight but can't .