Multiple time frame analysis
We will use multiple time frame analysis to see how the overall market is doing. It is to filter out poor trades and to take only high quality setups.
We will start on the higher time frames before moving on to the lower ones. For example, on the daily chart we generally look for:
- trend direction
- angle and separation of the moving averages
- size of candles and the MACD for momentum
- key level of support and resistance
We will only look for trades where the moving averages show a good angle and separation, and the trends across different time frames point in the same direction.