There are many ways traders use multiple time frames for their trading. I am not saying one is better than the other but in my 16 years of trading I have learned a way that works for me and our members. Our indicators are there to confirm the patterns we trade. Within each pattern there are multiple levels (or legs) that we calculate.
With patterns it is not as easy as just having a picture printed out next to your computer and just waiting for the chart to look the same. Patterns are only the start of what is about to happen and there are different things that happen after different patterns. Knowing what comes next after the pattern is actually more important that just finding the pattern.
What comes next after the buy or sell of the pattern can tell you if the next pattern will complete.
Example: Take a simple ABC correction. What do you do after you buy C? What patterns are you now looking for after you are in the trade to tell you if the next pattern will complete?
We call it flowing with the market and to flow with the market it is crucial you have odds on what pattern comes next and what to look for in each leg after the last pattern to tell you if the last pattern was true or false.
If you are in a long trade but the long patterns are becoming false you do not want to just hold the trade and get stopped out. Before you can understand what is true or false you have to have the understanding and the core thought to tell you what is happening.
Many traders skip the most important steps because they are just looking for the fastest way to get to the end result. In our opinion that is why most traders fail but that can change if you start learning more of the “why things are happening” not just searching for the result with only one thought, trading obvious levels.
Once you learn the core thoughts then apply it to multiple time frames and you will start seeing more of the “Why” things are happening and you can start building confidence to then take action when you see the trades line up. Not only take the better trades but you will have the confidence to actually hold them!
Happy Trading,
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