Pitfalls of multi timeframe analysis

[Billy Gates]

Does anybody here use lower timeframes here to enter exit trades? If so what disadvantages do you experience and how do you think they could be overcome?

ARe they actually worth doing or should one stick to the same timeframe?

 

[Albert Carey]

I think there's a lot of merit to this approach but for position sizing and scaling in and out. I have been using multi-timeframe analysis for quite some time and I find that it increases my returns about 10% on the average.

 

[Splitlink]

If you are a morning or afternoon trader and so only get a half session because of your work schedule
you may find, as I do, that hourly bars make you miss opportunities. Nevertheless,I do note the hourly peaks and troughs, transferring them to 15M TFs. I, also, prefer to transfer my hourly averages to the 15M TF, that said, I prefer 15M bar action. You'll find that you'll develop your own style as you go along.

 

[Shaun12uk]

In my opinion it also really depends on what style of trader you are and what your risk appetite is and time of day trading if day trading. I will look at 1hr time frames for a trend and use 5min or even 10min and 1 min depending on what time of day it is in current volatile conditions. Also lowering the time frame for entry/exit then it allows me to manage with tighter stops.

 

[nunrgguy]

Looking at different timeframe charts separately leads to confusion. Using an overlay and looking at them on the same chart leads to clarity as long as you don't use more than about 3 at a time. The human mind likes 3s. If three becomes too much maybe try drawing a line, say at the daily open if you trade intraday and using that as a filter with 2 time frames.

Some like pie charts, others prefer bar charts. It's all the same data, presented differently.

 

[Shaun12uk]

Interesting - perhaps you could post one of you charts as an example for us to have a look at.

 

[nunrgguy]

Interesting - perhaps you could post one of you charts as an example for us to have a look at.

Look at my recent posts - I've posted up few this last week or so. This is a very common question on here

The answer is you are trading all timeframes and none.