DAY15

Goodday,Wewil
lbelooki
ngatthetopdownanaly
sis(
ti
mef
rame)conceptt
oday
andhowtoappl
ydi
ff
erentt
imefr
amesinouranal
ysi
s.

Ihopeyou havesometi
mesnot icedt
hisi
nourcharts.Youopenthe15M t
ime
fr
ames,t
hecandlei
ssayingSel
l,y
ouopent he1hourti
mef rameandit
'ssay
ingBuy
.
Younowgetconf
usedandaskyoursel
faret
hecandl
eswrong?

Whyist he M5,M30andH1t imefr

ameshowi ngcont
rast
ingcandl
es?AndIam
t
alki
ngaboutsameCandl
est
icksher
e,notbarchar
t.

Yourheadwouldnow bescatt
ered.You'
l
lkeeponaski
ngy
our
sel
fwhyt
heyar
e
di
ff
erent
.Ar
etheynotsupposedt
obethesame?

Coul
dt heyal
lbewrong?.Theansweri
stheyarenot.Theyar
eshowingyouwhatis
happeni
ngwi t
hrespectt
oti
me.Theyar eal
lanal
yzi
ngthesamedat abutwi
threspectt
o
di
ffer
entti
mes.

Basical
ly
, eachcandl
ewi
llf
orm aspert
het i
mef r
ameyouar
eusing.Forexampl
e,i
f
youareusingt he1hrti
mefr
ame.Itmeanst hatther
ewi
llbeacandl
ef or
mat i
onev
ery
onehourony ourchart
.

I
fyouareusingthe4hourti
mefr
ame.ForH4=t
hecandl
efor
msev
ery4hr
ssoi
t
wor
ksli
ket
hatforever
yti
meframeyouuse.

Nowt
henextQuest
ioni
sthi
s?Whati
stheBestTi
meFr
amet
ouse?

I
tal
ldependsony
ou.Whatki
ndofper
sonal
i
tydoy
ouhav
e?

Whatkindoft
raderar
ey ou?Doy ouli
kethefastact
ionsandt
headr
enal
i
nespi
kes
oft
hemovingchar
ts?.Doyouwantitcalm andst
eady?

So,l
i
keIwassay
ing,
itdependsont
heki
ndoft
imef
ramef
rom whi
chy
ouar
edoi
ng
y
ouranal
ysi
s.

 Scal
per
smakesuseoft
he5mi
nut
esand1mi
nut
eti
mef
rame.

 I
ntr
adayt
rader
suseM15t
oH1

 Swi
ngt
rader
s(1dayt
o5day
s)useH4andD1t
orunt
hei
ranal
ysi
s,

Whi
lelongtermtrader
s,(
THEBIGDONS,superr
ichpeopl
e,whohavemill
ionsand
bi
l
li
onsofdoll
ars)usetheWeekandmont
hlychar
tst
or unt
hei
ranal
ysi
s,because,t
hey
mayl
eav
ethei
rtr
adeopenf
orsev
enmont
hswi
thoutt
ouchi
ngi
t.

AScalper,
mayprefert
ouseM1andM5.Thati
s1mi nut
eand5mi nut
eschar
ts.An
I
n-t
radaytr
adermaysti
cktoM15toH1.ASwi
ngtrader
,mayjustuseH1toD1-Thatis
1hour,4hour
sorDai
lychart
s

Agai
n

Whi
l
etr
adi
ng

Doyoujustopenj
ustoneChar
tandAnalyze.Let
'ssayy
ouar
eanI
n-t
radayt
rader
.
Doy
oujustopenM15andMakeallyourAnal
ysi
sonM15?

Wel
l
,that
’sawr
ongt
hingt
odo.

Topdownanalysisiswheny oudeci det otradet heM30mar ketbuty ouconsultthe

l
argertimefr
amesf i
rsttohav eabetterunder standingofwhatt hemar ketissayi
ng.For
example,i
fyouaretradingtheM30mar ket,You'l
lstartyourtopdownanal y
sisfr
om t he
H4timef r
ame.Checkwhati sgoi
ngont here,whatt heindi
catorsaresay i
ng,youcheck
theH1aswel ltoseewhati sgoingont here,andt hen f i
nal
lytheM30char t.Wit
ht his,
Youar eabl
etoseewhati shappeningandwhatt heI ndi
cat
orsar esayingondi f
ferent
chart
sortimefr
ames, befor
emaki ngy ourf i
naldecision.

Nowthisisthesecr
et,i
nsi
tuat
ionswher
ethe3ar
eagr
eei
ngont
hesamemar
ket
di
recti
on.Thati
sabanker.

Buti
nanycase,whatyouhav
etounder
standi
sthatt
hehi
ghert
imef
ramesr
ule
ov
erthel
owert
imef
rames.

Thatmeansifthechar
tonthelowerti
meframesaytheM15i sindicati
ngasellbut
youcheckthehigherti
meframessayt heH1andH4andt heyar
ebot hshowingabuy ,
thenyouhavetobewear yoft
hesellt
radeyoutakeontheM15.Youmayt akeitbutyou
havetoknowthatitwil
lbeshor
t-
li
vedwhent he1houror4hourmarkcomesar ound.

NB:thel
owert
imef
ramesev
ent
ual
lyal
ignwi
thwhatt
hehi
ghert
imef
ramesar
e
say
ing.

That '
swhysomecr yptot
radersespeciall
ythosethatarestart
ingwouldalway
sask,
whyar etheynotr i
ghti
nanalyzi
ngwher et hemar ketwouldgo.Di dn'
ttheyuseallthe
char
ts,thewayi twasaskedt
obeused? .Theansweri sthat:Theyhadanar rowvi
sion.
Theyjustfocusedonwhatonesingleti
mef ramewassay i
ng.
 Checkt
hisout
,samechar
t,butast
imef
ramechanges,t
hecandl
est
ickchange
di
recti
on.

Butt
hetri
ckisthi
s,i
fmaj
ori
tyoft
het
imef
ramesar
esay
ingt
hesamet
hing,y
ou
cant
rusty
ouranal
ysi
s.

Sobasi
call
ywhatyoumustunder
standi
sthatbef
oretradi
ngapar
ti
cul
arpai
r,You
mustf
ir
stconsul
tthebi
ggert
imef
ramestohaveanoverv
iewofthemar
ket.

Nowalsoaboutthekindoftr
aderthatyouare,orwhatyouwishtobe.Unl
essyou
areapr
oscalper
,thel
essnoisymarket
s(highert
imeframes)ar
ethebestt
imefr
amesto
tr
adeasatr
ader,buti
tal
ldependsonyourtypeoftrading.

Thehighertimefr
amesshow adefi
nit
edirecti
onunli
kethelowertimefr
ames.On
thelowertimef r
amesy oucanfindaclearuptrendwhichonlylastforli
ke5t o15
minutesandt henitwil
lchangei
ntoadowntr
endwi thi
nthenext5t o15minutes.You
don'
tneedallthatconfusi
on.

It
'si
mport
anttosimplyl
ookfordi
r ect
iononthehighert
imefr
amesandt hentake
t
radesonthel
owerti
meframesthatal
ignwi t
hthedi
recti
onofthehighert
imef
rames.

Thatwi
l
lbeal
lfort
oday
.Thanky
ou.