Chapter 12
Frame-by-Frame
The Concept of Multiple Time Frames
When talking about trends, or support and resistance levels, you may have been asking yourself, “What time frame are we talking about,” as well as, “How do the various time frames interact with each other and how can I use this interaction to my advantage when trading?” Up to this point, the time frames has not mattered. Everything we have discussed previously applies to any and all time frames and always will. If you have a two-minute uptrend, and you have a two-minute Pristine Buy Setup, it is a legitimate play. If you have resistance on a two-minute chart, it is valid resistance. Now, what we want to explore is whether that two-minute chart will have better odds if the 15-minute chart is an uptrend. Do we need to look at the daily chart? How about the weekly chart?
WHICH TIME FRAMES?
A common misconception some people believe is that all time frames need to be pointing in the same direction. While theoretically there is a moment in time when this will happen, it is simply not necessary. What we really want to see is that the time frame we are playing has enough room to continue its trend for a significant period of time. Beyond that, it is much more important that the quality of the trend we are concerned about is a high-quality trend. This is much more important than trying to find a moment when every time frame in the universe is pointing in the same direction.
For example, if you are playing a two-minute uptrend, ...
