Multiple time frames analysis can be overwhelming for some. In one frame, we are in an uptrend while, in another time frame, we are in a downtrend.
Add in more time frames to check for “confirmation” and confusion can become so severe, people tend to simply freeze.
The issue is that there comes a time where the multiple time frames mesh and either the higher or lower time frame takes over.
Patterns in one-time frame take on a whole new meaning when looked at in the context of another time frame.
There is the belief that the higher time frame carries more weight but remember at any time, one time frame can take over and a turn over happens.
In This Piece, I Want To Show You:
How to draw different trend lines
How to determine trend
How to trade counter-trend using trend lines
Trend Lines And Trend
Since the trend on one time frame can become the dominant trend at any time, it’s not a bad idea to see where we are in the bigger picture.
Trend lines are good tools to use for trend determination and in the right hands can become a stand-alone trading tool.
Related – What Story Does Your Chart Tell You?
Not only can they help determine your trend direction, they can also point to the rate of the trend which is great information to have in terms of taking a trade.
In defining how to draw a trend line, we open an entirely different issue. Connecting swings in price can be subjective especially if we include internal trend lines.
The key is to be consistent at every turn when you draw the lines.
