Trading Price 3: Multiple Time Frame Analysis Flashcards

1
Q

Reason for Time frame analysis

A
  1. Profit - Trade on Impulse trend 95%, Correction trend 5% 2. Decrease Risk - set stops 3. Increase Probability - find zones
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2
Q

What is minimum amount of time frames trader should use?

A

Minimum is 2, but 3 will give you a more precision based trade.

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3
Q

3 Time Frames

A
  1. The 1st time frame used is the HIGHER TIME FRAME, AKA The big picture 2. The 2nd timeframe is: INTERMEDIATE TIME FRAME 3. 3rd timeframe: SMALLER TIME FRAME
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4
Q

Purpose of Higher Time Frame

A

ID the Trend what is the trend direction?

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5
Q

Pupose of Intermediate Time Frame

A

ID Supply and Demand Zones

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6
Q

Pupose of Smaller Time Frame

A

OPTIONAL gives you a more precision based entry - like a #2 entry within zones

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7
Q

What two timeframes can the trader set up a trade?

A
  • A trader may set up the entry, stop, and targets based upon either the intermediate or smaller time frame income trader: smaller timeframe Swing trader: intermediate timeframe- or combo of two
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8
Q

How do we find QUALITY S/D zones?

A
  • Odds enhancers
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9
Q

How to use 2 timeframes

A

Higher time frame: ID TREND Intermediate Time Frame: - ID BOTH S/D Zones - S.E.T. Trade (Stop, Entry, Target)

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10
Q

How to use 3 timeframes

A

FOR INCOME TRADING Higher time frame: - ID TREND Intermediate Time Frame: - ID BOTH S/D Zones Smaller Timeframe - S.E.T. Trade (Stop, Entry, Target) - Entry to buy, Stop Loss, Target 1 and 2

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11
Q

How to use 3 timeframes in Hybrid Fashion

A

FOR SWING (GROWTH) TRADE Higher time frame: - ID TREND Intermediate Time Frame: - ID BOTH S/D Zones - Set Stop Loss, Target 1 and 2 Smaller Timeframe - Entry to buy

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12
Q

Hard Fixed Target

A

If exit all at once

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13
Q

Let profits run exit tactic

A

Example: If sell half at target, and other half run using technical stop

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14
Q

What kind of trader uses 2 timeframes only?

A

Swing Set it and forget it new trader people limited by time

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15
Q

What kind of trader uses 3 time frames?

A

Income/paycheck trader Advanced trader

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16
Q

Long Term Pro Active Investor’s 3 Time frames and purposes

A

HTF (MONTHLY) - ID TREND ITF (WEEKLY) - ID Zones - (S.E.T. TRADE - 2 TIMEFRAMES) STF (DAILY) - Precision based Entry

17
Q

Long Term Swing Trader’sTime frames and purposes

A

HTF (WEEKLY) - ID TREND ITF (DAILY) - ID Zones - (S.E.T. TRADE - 2 TIMEFRAMES) STF (60 MIN) - Precision based Entry

18
Q

Long Term Day Trader’s 3 Time frames and purposes

A

HTF (DAILY) - ID TREND ITF (15 OR 30 MIN, 60) - ID Zones - (S.E.T. TRADE - 2 TIMEFRAMES) STF (5 MIN) - Precision based Entry Suggested for Daily Paycheck

19
Q

Short Term Swing Trader’s 3 Time frames and purposes

A

HTF (DAILY) - ID TREND ITF (60 MIN) - ID Zones - can use 30min but usually 60. - (S.E.T. TRADE - 2 TIMEFRAMES) STF (5 MIN) - Precision based Entry -Ryan Watkins uses this Time frame

20
Q

Short Term Day Trader’s 3 Time frames and purposes

A

HTF (60 MIN) - ID TREND ITF (15 MIN) - ID Zones - (S.E.T. TRADE - 2 TIMEFRAMES) STF (1 MIN OR TICK CHART) - Precision based Entry

21
Q

what action do i take?

A

Uptrend: DO NOT BUY. possible SELL SHORT in extreme SUPPLY zones Down trend: Look to BUY in DZ

22
Q

what action do i take?

A

uptrend: Look to SHORT in SZ downtrend do not sell, possible buy in extreme DZ

23
Q

targets for timeframes

A

1st target from be S/D from trading timeframe2nd target from S/D from higher timeframe

24
Q

how to calculate TFs

A

HTF = Trading timeframe X 4, 5 or 6STF = Trading timeframe / 4, 5 or 6

25
Q

how to see S/D zones in larger timeframes

A

If there are wicks on top and bottom, and the open close is close to each other, then there will be S/D zones in lower timeframe