In This Chapter
Getting familiar with scales and how they’re used in trading
Examining the approach of trading with the larger scale trend
Trying a better approach by trading with the larger scale momentum
The concept of looking at the same thing on different scales has revealed many secrets. The world of science has opened dramatically with the invention and continued improvement of the telescope, which has revealed worlds we never knew existed. Likewise, looking at stocks, futures, and forex on different scales can help reveal things in those markets that would otherwise remain unknown.
Trading multiple time frames of the same market is a very common practice among traders. For example, traders often base their trading on a daily chart (where each bar represents the movement of the market during one trading day) and then also look at a weekly chart of the same market. Trading multiple time frames is also a common practice among day traders. For example, day traders commonly base their trading on a 5-minute chart and also look at a 15-minute chart.
In this chapter, I show you how to use charts of more than one time ...