I use different time frames to improve my TIMING accuracy. Once my "anchor" time frame is SELECTED, I will take analyze the time One level lower the "anchor" and one level above the "anchor".
My antique charting software of 1990s allows me to only plot maximum 3 time frames.
Online charting software (realtime or 15m delayed) with intra-day capable are more flexible to accommodate more time frame.
Find the suitable time frames to suit your style. It can be 4 or 5. My suggestion is NOT to go beyond 5 time frames ie. 2 below and anchor and 2 above anchor.
Eg. Anchor = WEEKLY. One level below is Daily and one level above is Weekly, than it becomes Daily - WEEKLY - Monthly
Eg. Anchor = DAILY. One level below is 4h/6h depending on the total trading hours in a day. In some cases it is 2h - DAILY - Weekly
Eg. Anchor is 4h. One level below is 1h and one level above is daily, 1h - 4H - Daily
I will analyze the price trend direction moving averages and the chosen 3 different parameters for the same indicator across all time frames
Eg. Macd 12-26-9, Macd 24-52-18, Maccd 48-54-36
Each time frame will be plotted with the above on separate panel stacking.
This becomes the step (1) of my template. Step (2) is to apply the different Moving Averages settings on the chart and replicated across the other time frames.
This is how I analyze my charts. Different people will have different approach and what matters is the user must understand what they mean when the analysis is done. Most important it must be easily understood, reliable 80% accuracy and can be replicated across different charting platform.
Find the indicator(s) that suit your style and find the parameters that meet your requirements.
I have use the DEFAULT as example illustration. How one "drive" the chart will depend on your personality and objective.


No comments:
Post a Comment