I wish someone told me sooner!!

Discussion in 'Trading' started by cashmoney69, Nov 20, 2008.

  1. Even though you might trade small time frames, its important to see the big picture all the way out to the monthly charts!. Yes, monthly charts.

    Why?. Think of it this way, if you have a 5min chart, a 1hr, and daily chart, the price is the same no matter what time frame, however the s/r levels for those time frames are NOT the same.

    As price gets close or near to these levels, price will act strongly. I witnessed this when I put up monthly, weekly, daily, 4hr, and 1hr fibs on my charts, and when price hits the longer term fibs, watch out!.

    I used to not look so far out, because my attitude was "why the hell do i need to, if im trading short time frames?", but it matters. I'm not saying you use these charts to take your trades from...of course thats done from the 1min, 5min or what ever you use for execution. I used to discount any large move that happened as simply either news, or just good old supply/demand, not bothering to think that it was near a mjaor s/r level on a larger time frame.

    I'm no expert, but start your analysis from the monthly charts, down to the smallest chart you use....i think you'll notice a difference in your trading.

    Happy trading! :)