Multi-Timeframe Analysis

Using the Dollar Index for illustration.


http://eagletrader.blogspot.com/2006/01/classic-multi-timeframe-analysis.html

 

your link isn't downloading.

can you explain what you mean - are you holding or are you flat most times at the end of the session- also which time frames?

 

nice sector analysis.

 

Jem.. Thx for comment..

Independence.. Surprised that link is not functioning, pls refresh..

I was putting forward an approach for trading in the direction of the bigger picture trend, whatever the timeframe.
When trading on the daily, the bigger picture is the weekly and monthly. When trading on a 5 min chart, the bigger picture is the 30 min and 2 hr charts..

Timeframes are a traders choice based on risk tolerance (One can trade off a 2 pt stop on a 5 min chart but may need a 15 pt stop on the daily chart of the SPX) - and setups (ie market condition).. What looks like a choppy market on a daily chart may have strong swings on a 30 min chart.

 

I agree with you , I 've recently come up with my own little time frame analysis similar to yours , it works very well.