Mastering Multiple Time Frames For Emini Futures
September 9, 2012 at 3:56 PM All markets can and should be viewed on multiple time frames. Becoming overly focused on just one time frame will result in tunnel vision. Always be aware of what is happening on higher time frames or you may very well stumble into the - Tick Vortex.
Mastering Multiple Time Frames For Emini Futures Trading
Chart analysis works best when several time frames are combined to identify important swing points and breakouts. Although we are using the term "Time" as a point of reference, you will also find that Tick and Volume charts will help you develop a multi-dimensional view of what is transpiring in the market. Once a short-term trader identifies the larger picture of support and resistance, trading opportunities then come from projecting how the next few ticks, minutes or hours of market action will unfold.
As you become skilled at understanding the bigger picture you will be able to locate good setups by reading reversal and breakout patterns inside short periods of cyclical market movement. When we first look at an hourly, daily or weekly chart, we might think, "There is nothing here to help me with my smaller time frame intraday trading“. The indications may not be very clear at first so we need to literally step inside the larger candle and see exactly how it was built. Looking at the same candle or price bar on an intraday chart will give you the missing information you need.
