Struggling trader, you’re about to learn the hidden secret to understanding different timeframes.

By the time you’ve read this short article, you’ll have a whole new world in front of you…

A world of vastly improved timing and squeezing more profits out of all your trades.

All new traders struggle with timeframes. I know some seasoned traders that still have trouble with timeframes.

What makes timeframes difficult is that the market you are trading can move in different directions at the same time in different timeframes. A weekly chart moves up while the daily chart moves down. An hourly chart falls while a 10 minute chart is rallying. When new traders discover this confusing truth, they usually just pick the daily timeframe and exclude all the others. That is a huge mistake. The reason you should not ignore other timeframes is that a trend starting in another timeframe will blind side you in your current timeframe.

You need to analyze the market you are trading in more than one timeframe.

All timeframes are linked by a factor of five. Every timeframe is related to the next higher and the next lower by the factor of five. There are 5 days in a week. There are 5 (4.3) weeks in a month. Always look at daily, weekly, and monthly charts. You want confirmation of a buy or sell in all three timeframes. Adding the dimension of time to your trading decisions will give you an advantage over most other traders.

Use three timeframes. If you are day-trading with 30- and five-minute charts, then a weekly chart is essentially irrelevant. Choose your favorite timeframe, add the timeframe one order of magnitude higher, and start your analysis at that point.

I hope you enjoyed this article. Leave any comments you might have below. Thank you and happy improved trading.

Lance Jepsen
President, GuerillaStockTrading.com
Your Trading Coach
(because everyone, even Tiger Woods, needs a coach)

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