Multiple Time Frame Using Swing Robert Krausz, who was featured in Jack Schwager’s
New Market Wizards, follows up his previous article
on the new Gann swing chartist with a detailed
presentation on using channels for setting up trading
In my previous article on dy-namic
multiple time frames, I
introduced one of my own ap-proaches
to trading: The con-cept
of multiple time frame trad-ing.
The essence of the strategy
is easy: Use the higher time frame
price activity to define the trad-able
trend as well as potential
support and resistance levels. For example, if you are
trading the Treasury bond futures contract and you
follow the market using 50-minute bars, then look to
the daily bar’s activity to indicate the trend and
support and resistance levels.
The same idea applies if you are trading a stock on
a daily basis — say, Microsoft — in which case, the
weekly bars will be the basis for the trend as well as
the important support and resistance points. That is
the foundation of multiple time frame trading.
Besides the effectiveness of using a method based
on a multiple time frame approach, another advan-tage
is the method need not be complicated. A trader
can make his or her method as simple or as compli-cated
as desired. For me, though, the simpler the
application, the better the results.