Stocks & Commodities V. 31:3 (28-32): Extended Multiple Time Frame Analysis by Tristan Jeanneault

Extended Multiple Time Frame Analysis by Tristan Jeanneault

Seeing The Undercurrents

This new twist to applying multiple time frame analysis will help you refine your entry and exit points.

Multiple time frame analysis (MTA) is not a new concept to traders but it can be examined in a new way, making it a more robust tool. The concept can be used in conjunction with any trading strategy, and it works well for most markets that can be traded. MTA allows you to set up your trading desktop and:

Identify the underlying trends in the market

Gauge the strength of a trend

Visualize the potential maximum daily range of the market

Visualize the common levels of support/resistance over multiple time frames

Filter existing trade indicators (signals)

Refine your entry and exit points.

Most traders trade with the market trend, buying or selling retracements against the prevailing one. However, many traders become frustrated when the retracement they buy or sell is actually an inflection point in the market, leaving them in a trade against the new trend, ultimately leading to a stopout and fewer profitable trades.