Technical analysis using multiple timeframes isn't about predicting the future; it's about . By aligning the "big picture" with your "entry point," you significantly reduce the chance of getting caught in a "fake-out."
Understanding MTFA requires recognizing where a stock sits in its life cycle: The stock is moving sideways.
A standard MTFA approach usually involves three specific views: The Higher Time Frame (The "Weather Map") Weekly or Daily. Purpose: To identify the dominant trend.
This is where you want to be a buyer. Higher highs and higher lows.
Before taking a trade based on Shannon’s principles, ask yourself:
(Can I place a stop-loss just below recent support?) Conclusion
In the world of trading, there is a famous saying: "The trend is your friend." But for most traders, the real struggle isn't finding a trend; it’s knowing which trend to follow. Is the stock "bullish" because it’s up today, or "bearish" because it’s down over the last month?
It allows for tighter stop-losses by identifying intraday support levels. 2. The Three-Tier Hierarchy
Technical analysis using multiple timeframes isn't about predicting the future; it's about . By aligning the "big picture" with your "entry point," you significantly reduce the chance of getting caught in a "fake-out."
Understanding MTFA requires recognizing where a stock sits in its life cycle: The stock is moving sideways.
A standard MTFA approach usually involves three specific views: The Higher Time Frame (The "Weather Map") Weekly or Daily. Purpose: To identify the dominant trend. Purpose: To identify the dominant trend
This is where you want to be a buyer. Higher highs and higher lows.
Before taking a trade based on Shannon’s principles, ask yourself: Before taking a trade based on Shannon’s principles,
(Can I place a stop-loss just below recent support?) Conclusion
In the world of trading, there is a famous saying: "The trend is your friend." But for most traders, the real struggle isn't finding a trend; it’s knowing which trend to follow. Is the stock "bullish" because it’s up today, or "bearish" because it’s down over the last month? 2. The Three-Tier Hierarchy
It allows for tighter stop-losses by identifying intraday support levels. 2. The Three-Tier Hierarchy